Are barriers to entry effective?
A) Yes, because long-term empirical evidence shows that industries with high barriers to entry exhibit higher returns on investment on average.
B) Yes, because once established they are irreversible.
C) No, because firms can overcome these barriers by modifying their strategies.
D) No, because higher returns attract more new entrants who want to benefit from higher returns than in non-protected industries.
Correct Answer:
Verified
Q30: Given the plethora of external influences, understanding
Q31: Firms in any industry can be said
Q32: Industries such as pharmaceuticals earn very high
Q33: Barriers to exit are
A)the non-recoverable costs of
Q34: PESTEL stands for
A)power, economy, social, threats, ecological,
Q36: The core of a firm's business environment
Q37: The idea with Porter's 5 Forces is
Q38: Economies of scale are a barrier to
Q39: One can view the connection between the
Q40: "Consumer surplus" is
A)the difference between the price
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