Which of the Following Is Not a Barrier to Entry?
Which of the following is not a barrier to entry?
A)Economies of scale
C)Absolute cost advantages
D)High customer bargaining power
E)High customer switching costs
If economies of scale are an industry's primary entry barrier,a new entrant's major risk is
A)its inability to access labor and materials.
B)the inferior quality of its products.
C)its inability to match the innovation of the established firm.
D)its inability to produce in sufficient volume to match the cost advantages of established producers.
E)its inability to get buyers to switch to its product.
As a barrier to new entry,absolute cost advantages can be based on
A)continuous advertising of brand and company names.
B)high product quality,service-oriented innovations,and good after-sales service.
C)cost reductions that arise from the mass production of standardized output.
D)the unique ability of established companies to spread fixed costs over a large volume.
E)control over low-cost inputs required for production,be they labor,materials,equipment,or management skills.
Which of the following industry structures consists of a large number of small and medium-sized companies,none of which is in a position to determine industry price?