According to Michael Porter, major potential barriers to entry include
A) economies of scale.
B) product differentiation.
C) switching costs.
D) capital requirements.
E) All of the answer choices are correct.

Question

Quizplus · Accepted Answer

All of the answer choices are correct according to Michael Porter as they all represent potential barriers to entry for new competitors. Economies of scale can create cost advantages for established firms, product differentiation can make it difficult for new firms to establish a foothold and compete on equal footing, switching costs may discourage customers from switching to a new competitor, and high capital requirements may make it difficult for new entrants to secure necessary resources to compete.

According to Michael Porter, Major Potential Barriers to Entry Include