Which barrier to entry uses cost advantages associated with large size?
A) rivalry among existing firms
B) switching costs
C) cost disadvantages independent of size
D) capital requirements
E) economies of scale

Question

Quizplus · Accepted Answer

Economies of scale use cost advantages associated with large size to create barriers to entry. This makes it difficult for new entrants to compete on a cost basis with established firms that benefit from economies of scale.

Which Barrier to Entry Uses Cost Advantages Associated with Large