Multiple Choice
Which historical compromise granted Congress the authority to regulate interstate and international trade in the United States?
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0. Basic Principles of Economics
Introduction to Economics
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is NOT considered a barrier to entry in a market?
A
Perfect information
B
Government regulations
C
High startup costs
D
Patents held by existing firms
Verified step by step guidance1
Step 1: Understand the concept of 'barriers to entry' — these are obstacles that make it difficult for new firms to enter a market and compete with existing firms.
Step 2: Identify common examples of barriers to entry, such as government regulations, high startup costs, and patents held by existing firms, all of which restrict or increase the cost of market entry.
Step 3: Analyze the option 'Perfect information' — this means that all market participants have full knowledge about prices, products, and production methods, which actually facilitates competition rather than hindering entry.
Step 4: Compare each option to the definition of barriers to entry and determine which one does not act as an obstacle for new firms entering the market.
Step 5: Conclude that 'Perfect information' is NOT a barrier to entry because it promotes transparency and competition, unlike the other options which create hurdles for new entrants.
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