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Economics glossary · Firms and competition

Legal protection

What legal protection means in economics, as one of barriers to entry, with an example and a question to test yourself.

Definition
Legal protection
Legal protection is a law that prohibits or severely limits competition in a market, so the barrier is the law itself rather than cost.
Example

Can you think of an example of legal protection?

Test yourself

Can you name five barriers to entry?

Learn it properly: the module

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