Which of the following is generally NOT considered a barrier to entry?
A) The reaction of incumbent firms to rapid market growth
B) High capital requirements and restrictive government policies
C) Strong brand preferences and a high degree of customer loyalty
D) Cost advantages due to the economies of scale in production enjoyed by incumbent firms
E) Strong "network effects" in customer demand

Question

Quizplus · Accepted Answer

The reaction of incumbent firms to rapid market growth is not typically considered a barrier to entry. Rather, it may be a factor that new entrants need to take into account when considering competition in the market.

Which of the Following Is Generally NOT Considered a Barrier