Question

A legal barrier of monopoly refers to

Group of answer choices

a barrier to monopoly entry into an industry

A law which makes entry of new businesses difficult limiting competition

a barrier to monopoly practices

a law that forbids monopoly

Answer 1

A legal barrier to monopoly means the legal barriers for the new firms to enter the industry where the monopoly firm is operating.

For some products, the government also erects barriers to entry by limiting competition. To give an example, in the U.S., no organization but the U.S. Postal Service is legally allowed to deliver first-class mail.

Thus, A legal barrier of monopoly refers to a law that makes the entry of new businesses difficult limiting competition.

Thus, the 2nd Option is the correct answer.

answered by: anonymous