Which is NOT a government action that results in a barrier to entry in a product market? granting a patent on a product prohibiting advertisers from making false claims imposing regulations that increase start-up costs for new companies requiring that companies have licenses to produce the product
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The action of prohibiting advertisers from making false claims is primarily aimed at protecting consumers and ensuring fair competition in the market rather than creating barriers for new entrants. It promotes transparency and maintains trust in the marketplace, which can actually benefit new companies looking to establish credibility. On the flipside, government actions like granting patents or imposing regulations can create significant hurdles for new businesses. Patents give exclusive rights to original inventors, while regulations can increase costs and complicate the start-up process. This can intimidate smaller companies or new entrants who may not have the resources to comply.