The best option that describes the barrier to entry keeping Astra Pharma as a monopoly is government-created monopoly. The Option 2 is correct.
Astra Pharma's monopoly is a government-created monopoly because it is the result of a patent granted by the government. When Astra Pharma developed the new drug and obtained a patent, the government granted them exclusive rights to produce and sell the drug for a specified period, typically 20 years.
During this time, no other company is legally allowed to manufacture and distribute the same drug, giving Astra Pharma a monopoly in the market. This government-granted exclusivity serves as a barrier to entry, preventing potential competitors from entering the market and offering a similar product.
So, the monopoly is contingent on the protection and enforcement of its patent rights by the government which makes it a clear example of a government-created monopoly.
The full question is:
Astra Pharma has developed a new drug that is highly successful in treating a viral disease that has previously been incurable. The company patented the drug and is now the only company that can legally produce and sell the drug. Which option best describes the barrier to entry that keeps Astra Pharma a monopoly: 1. Monopoly resource. 2. Government-created monopoly. 3. Natural monopoly.