Question

Which of the following is not an example of a barrier to entry? A. Mighty Mitch's Mining Company owns a unique plot of land in Tanzania, under which lies the only large deposit of Tanzanite in the world. B. A chemist receives a patent for a new skin cream. C. A taxi cab driver in New York City obtains a license to legally provide transportation in New York City.

Answer 1

C. A taxi cab driver in New York City obtains a license to legally provide transportation in New York City.

Step-by-step explanation:

Barrier to Entry refer to ownership rights, which restrict the other to use the associated good or service.

C) A Taxi cab driver in New York City obtains a license to legally provide transportation in New York City : Is just a permit for the driver, allowing him to provide transportation services, as per required legal mandates. It doesn't exclude others from owing those rights, from getting a similar license. So, it is not a Barrier to Trade.

A) The Mining company land rights gives exclusive corresponding deposit rights to them only, excludes other from its usage. B) The chemist having patent rights excludes others from using its technique. So, these are Barriers to Trade.