Entrenched companies may have cost advantages not available to potential rivals.This is an example of:
A) Capital requirements
B) Cost disadvantage independent of size
C) Economies of scale
D) Government policy

Question

Quizplus · Accepted Answer

Cost disadvantages independent of size refer to the benefits that established companies have which are not related to the scale of operation but rather due to their established position in the market. These can include proprietary technology, access to the best raw materials sources, favorable locations, and experienced personnel, which new entrants cannot easily or cheaply replicate.

Entrenched Companies May Have Cost Advantages Not Available to Potential