If a "certificate of convenience and public necessity" protects a monopolist's position, the barrier to entry this firm relies on is called
A) a tariff.
B) a government license.
C) a patent.
D) economies of scale.

Question

Quizplus · Accepted Answer

A "certificate of convenience and public necessity" is a form of government license that restricts entry into an industry. This is the barrier to entry relied on by the monopolist, and it grants them exclusive access to the market. Tariffs are fees levied on imported goods to protect domestic producers, patents protect intellectual property, and economies of scale are cost advantages that arise from producing on a large scale. None of these are directly related to a certificate of convenience and public necessity.

If a "Certificate of Convenience and Public Necessity" Protects a Monopolist's