There are several types of barriers to entry that can create a monopoly.Which of the following barriers is the result of government action?
A)network externalities
B)public franchise
C)economies of scale
D)control of a key resource

Question

Quizplus · Accepted Answer

A public franchise is a government-granted right to a business to operate exclusively in a specific market, which creates a barrier to entry for other firms. Therefore, it is the result of government action. The other barriers to entry listed (network externalities, economies of scale, and control of a key resource) are not specifically the result of government action.

There Are Several Types of Barriers to Entry That Can