Which of the following is generally not considered a barrier to entry?
A)restrictive regulatory policies
B)high capital requirements
C)strong brand preferences
D)many industry patents in place
E)weak network effects in customer demand

Question

Quizplus · Accepted Answer

Weak network effects in customer demand means that the market demand for a product is not strongly dependent on the number of existing customers. This indicates that new entrants can easily enter the market without facing significant barriers. The other options listed (restrictive regulatory policies, high capital requirements, strong brand preferences, and many industry patents in place) are more commonly considered barriers to entry.

Which of the Following Is Generally Not Considered a Barrier