Which of the following undermines the effectiveness of a barrier to entry?
A) the existence of patents in the industry
B) high fixed cost
C) no access to resources
D) product differentiation
E) rapid technological innovation

Question

Quizplus · Accepted Answer

Rapid technological innovation undermines the effectiveness of a barrier to entry because it can allow new entrants to bypass existing barriers or create new methods of production, distribution, or product development that established companies may not have. This can level the playing field for new entrants, reducing the effectiveness of traditional barriers such as patents, high fixed costs, exclusive access to resources, and established product differentiation.

Which of the Following Undermines the Effectiveness of a Barrier