Hospitals and universities are very expensive to run not only due to the capital equipment that is required for each, but also due to the personnel such as specialized medical doctors and researchers. The cost of these types of institutions is an example of
A) Enhancing barriers to entry.
B) Eliminating protectionism.
C) Unfair competition.
D) Enhancing trade protectionism.
E) Eliminating barriers to entry.

Question

Quizplus · Accepted Answer

Barriers to entry are conditions that prevent new companies from entering an industry. In this case, the industries are medicine and education, and the equipment and personnel are extremely expensive and perhaps scarce, leading to barriers to entry.

Hospitals and Universities Are Very Expensive to Run Not Only