QuestionMay 27, 2025

Which of the following is most unlikely to present a barrier to entry into a market? deregulation patent laws technological advantages market forces

Which of the following is most unlikely to present a barrier to entry into a market? deregulation patent laws technological advantages market forces
Which of the following is most unlikely to present a barrier to entry into a market?
deregulation
patent laws
technological advantages
market forces

Solution
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Answer

Deregulation Explanation 1. Identify barriers to entry Barriers to entry are obstacles that make it difficult for new firms to enter a market. Common barriers include patent laws, technological advantages, and market forces. 2. Analyze each option - **Patent laws** protect inventions, preventing others from using them without permission. - **Technological advantages** give established firms a competitive edge due to superior technology. - **Market forces** can include economies of scale or brand loyalty, making entry challenging. - **Deregulation** reduces restrictions, potentially lowering barriers to entry. 3. Determine the least likely barrier Deregulation typically removes constraints, making it easier for new entrants to join the market.

Explanation

1. Identify barriers to entry<br /> Barriers to entry are obstacles that make it difficult for new firms to enter a market. Common barriers include patent laws, technological advantages, and market forces.<br /><br />2. Analyze each option<br /> - **Patent laws** protect inventions, preventing others from using them without permission.<br /> - **Technological advantages** give established firms a competitive edge due to superior technology.<br /> - **Market forces** can include economies of scale or brand loyalty, making entry challenging.<br /> - **Deregulation** reduces restrictions, potentially lowering barriers to entry.<br /><br />3. Determine the least likely barrier<br /> Deregulation typically removes constraints, making it easier for new entrants to join the market.
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