Which of the following is the best example of a barrier to entry created by a firm's incumbency advantages?
A) A company with superior technology when compared to its competitors
B) A company engaging in extensive advertising to gain consumer loyalty
C) A company that is marked by overcrowded distribution channels
D) A company which manufactures its products in high volumes

Question

Quizplus · Accepted Answer

A company with superior technology when compared to its competitors is the best example of a barrier to entry created by a firm's incumbency advantages. This is because superior technology can give a company a significant advantage over its competitors, making it difficult for new entrants to compete.

Which of the Following Is the Best Example of a Barrier