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Explain any two sources of restricted entry under monopoly

Answer» <html><body><p></p>Solution :The two sources of restricted entry under monopoly are as follows:1) Government Licensing: It means that before a firm can enter an industry, it needs to take <a href="https://interviewquestions.tuteehub.com/tag/permission-1151639" style="font-weight:bold;" target="_blank" title="Click to know more about PERMISSION">PERMISSION</a> from the government. Licensing is used to <a href="https://interviewquestions.tuteehub.com/tag/ensure-972238" style="font-weight:bold;" target="_blank" title="Click to know more about ENSURE">ENSURE</a> minimum standards of competency. By not granting licenses to new firms, government aims to assure that only one firm operates in the market.2) <a href="https://interviewquestions.tuteehub.com/tag/patent-1148829" style="font-weight:bold;" target="_blank" title="Click to know more about PATENT">PATENT</a> rights: Certain big private companies are engaged in research and development <a href="https://interviewquestions.tuteehub.com/tag/activities-848359" style="font-weight:bold;" target="_blank" title="Click to know more about ACTIVITIES">ACTIVITIES</a>. At times, they come up with new technologies. As a reward for their risk and investment in research, government grant them patent right. The <a href="https://interviewquestions.tuteehub.com/tag/period-1151023" style="font-weight:bold;" target="_blank" title="Click to know more about PERIOD">PERIOD</a> for which patent rights is known as patent life.</body></html>


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