Which of the Following Statements Is True About Government Regulations

Multiple Choice

Which of the following statements is true about government regulations in the context of entry barriers of an industry?

A) Goverrnnent deregulation in an industry results in significant reduction in competition.
B) Goverrunent regulation has not constituted a major entry barrier for many industries.
C) Falling entry barriers due to goverrnnent deregulation results in higher competition and lower industry profit rates.
D) The threat of new entrants reduces when the goverrunent deregulates an industry.
E) Companies that enjoy brand loyalty and have significant scale economies are the ones who face major threat of competition due to goverrnnent deregulation.