Final answer:
The correct answer is b. In this question, we examine various barriers to entry in a market. We identify whether each barrier is natural or government-created. Patents and copyrights are government-created barriers, while control of resources and economies of scale are natural barriers. Occupational licensing may be a government-created barrier, but it may not be directly related to entering a specific market.
Step-by-step explanation:
In this question, we are asked to identify which of the following barriers to entering a market are natural and which are government-created. Let's go through each option:
- Patents: A patent is a government-enforced barrier to entry that grants the inventor exclusive rights to their invention for a certain period of time. This prevents others from producing or selling the patented invention without permission.
- Copyrights: Similar to patents, copyrights are also government-created barriers to entry. They protect original works of authorship, such as books, music, and artwork, from unauthorized copying or distribution.
- Occupational licensing: Occupational licensing is a government-created barrier to entry that requires individuals to meet certain qualifications or obtain a license in order to practice a particular profession, such as doctors, lawyers, or hairdressers.
- Control of resources: Control of resources is a natural barrier to entry that occurs when a firm monopolizes or controls access to essential resources needed for production, such as rare minerals or oil reserves.
- Economies of scale: Economies of scale are a natural barrier to entry that occur when a firm's average cost of production decreases as it produces more output. This cost advantage makes it difficult for new competitors to enter and compete effectively.
- Problems in raising capital: This is not a barrier to entry enforced by the government. It refers to the challenges a new entrant may face in securing the necessary funds to start or expand their business.
In conclusion, the natural barriers to entering a market are: control of resources and economies of scale. The government-created barriers to entry are: patents and copyrights. Occupational licensing is another government-created barrier, but it may not be directly related to entering a specific market.