Regarding fixed costs of entry
A)both incumbents and potential entrants are affected by them.
B)potential entrants are affected by them while incumbents are not.
C)neither incumbents nor potential entrants consider them.
D)incumbent's decisions are affected by them, while the potential entrant ignores them.

Question

Quizplus · Accepted Answer

Fixed costs of entry are costs that must be incurred by a new entrant to enter a market. Incumbents have already incurred these costs when they entered the market, so these costs primarily affect potential entrants, not the incumbents.

Regarding Fixed Costs of Entry