Question

in Louisiana, it was a crime to sell burial caskets without a funeral director's license. This law was a source of _____ for licensed funeral directors and an example of _____. A. monopoly power; a legal barrier to entry B. product differentiation; economies of scale C. monopoly power; a natural barrier to entry D. competition; decreasing average costs

Answer 1

The correct option is A,monopoly power,a legal barrier to entry

Step-by-step explanation:

Monopoly power is the exclusive right granted to a business or a group of professionals in order to produce a particular good or provide a service.

The fact that no one else can give the go-ahead to purchase casket except the funeral directors is a form of monopoly.

However,this arrangement has a knock-on effect ,which is the legal barrier to entry. It is a legal barrier because it was created by law.

Option C is is wrong because the barrier is legal not natural barrier,natural barriers are usually as a result of exclusive ownership of major input of production