Why is a government franchise likely to serve as a stronger barrier to entry than possessing technology than competitors don't currently posses?
What will be an ideal response?
The reason is that government franchise can be enforced by law whereas competing firms can always develop new technologies that may make existing technologies obsolete and this can reduce whatever monopoly power was enjoyed by the firm in possession of the older technology.
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If 100 Japanese yen buy more U.S. dollars today than yesterday, the dollar has ________ and the yen has ________
A) depreciated; appreciated B) appreciated; depreciated C) depreciated; depreciated D) appreciated; appreciated
Subject to a few legal and practical restrictions, anything may be exchanged for anything else. The distinctive advantage of money is that ________
A) it is likely to retain its value, whether it is kept or exchanged B) it has little, if any, use other than exchange C) it can generate income while it is kept D) it is likely to be accepted by everyone in exchange for anything E) none of the above