Final answer:
The barrier to entry that can be effectively addressed through education or vocational training is knowledge and skills, as these can empower individuals to meet the qualifications required in certain markets. Government-enforced barriers include specific licensure requirements and regulations, whereas trademarks and control of a unique resource are non-government barriers. Natural monopolies arise from economies of scale serving as a barrier to entry.
Step-by-step explanation:
The barrier to entry that can be overcome by education or vocational training is knowledge and skills. This is because acquiring the necessary knowledge and skills can enable individuals to compete in industries where specific expertise is required.
Classification of Barriers to Entry
- a. A city passes a law on how many licenses it will issue for taxicabs - government-enforced barrier to entry
- b. A city passes a law that all taxicab drivers must pass a driving safety test and have insurance - government-enforced barrier to entry
- c. A well-known trademark - barrier to entry that is not government-enforced
- d. Owning a spring that offers very pure water - barrier to entry that is not government-enforced
- e. An industry where economies of scale are very large compared to the size of demand in the market - barrier to entry that is not government-enforced
Intellectual property laws, such as patents and trademarks, create barriers to entry by protecting the legal rights of inventors and businesses, preventing others from using their innovations or branding without permission.
A natural monopoly occurs when economies of scale enable one firm to supply the entire market at a lower cost per unit than could be achieved by multiple firms, which creates a barrier to entry.