Which of the following is not an example of a barrier to entry?
A)John owns the only parcel of lakeside property with a beach that is safe for swimming. He charges admission to neighbors who want to use the beach.
B)Jackie owns the copyright to a popular song. She receives royalties every time a radio station plays her song.
C)John Jr. owns the best seafood restaurant in a popular resort area. He charges high prices because the quality of the food is so good.
D)Caroline owns the patent for a new running shoe. She receives payments from the company who manufactures the shoes.

Question

Quizplus · Accepted Answer

John Jr.'s high prices due to high quality food may deter some customers, but it is not a barrier to entry for other restaurants to compete with him. A barrier to entry is a factor that makes it difficult or impossible for new firms to enter an industry and compete with existing firms. In options A, B, and D, the ownership of unique property, copyrights, and patents respectively create barriers to entry as they give the owner exclusive rights that prevent competitors from entering the market.

Which of the Following Is Not an Example of a Barrier