Final answer:
a. A city passing a law on how many licenses it will issue for taxicabs and b. A city passing a law that all taxicab drivers must pass a driving safety test and have insurance are examples of government-enforced barriers to entry. A well-known trademark is a barrier to entry that is not government-enforced. Owning a spring that offers very pure water and an industry with large economies of scale compared to demand are situations that do not involve a barrier to entry.
Step-by-step explanation:
a. A city passing a law on how many licenses it will issue for taxicabs is an example of a government-enforced barrier to entry. The city's law restricts the number of taxicabs that can operate, limiting competition and making it more difficult for new entrants to enter the market.
b. A city passing a law that all taxicab drivers must pass a driving safety test and have insurance is also an example of a government-enforced barrier to entry. This requirement is set by the government and creates an additional hurdle for aspiring taxicab drivers who need to meet these criteria before entering the market.
c. A well-known trademark is not a barrier to entry that is enforced by the government. Instead, it is a barrier to entry that is not government-enforced. The reputation and recognition associated with a well-known trademark can make it challenging for new businesses to compete in the same market.
d. Owning a spring that offers very pure water is an example of a situation that does not involve a barrier to entry. While it may provide a competitive advantage to the owner in terms of water quality, it does not present a direct barrier preventing others from entering the market.
e. An industry where economies of scale are very large compared to the size of demand in the market is an example of a situation that does not involve a barrier to entry. Although large economies of scale may create challenges for new entrants to compete on cost, it does not constitute a specific barrier enforced by the government.