Which of the following is an example of a barrier to entry?
A)Tom charges a higher price than his competitors for his golf lessons.
B)Dick charges a lower price than his competitors for his lawn-mowing services.
C)Harry offers free concerts on Sunday afternoons as a form of advertising.
D)Larry obtains a copyright for the new computer game that he invented.

Question

Quizplus · Accepted Answer

Obtaining a copyright for a new computer game is an example of a barrier to entry, as it prevents competitors from entering the market and producing the same game without permission. The other options do not represent barriers to entry. Tom charging a higher price for his golf lessons may make his services less attractive to customers, but it does not prevent competitors from entering the market. Dick charging a lower price may make him more competitive, but it does not prevent others from offering the same service. Harry offering free concerts may be a form of advertising, but it does not necessarily prevent competition in the market.

Which of the Following Is an Example of a Barrier