The greater the economies of scale of an existing organization, the lower are the barriers to entry for new competitors.

Name: The greater the economies of scale of an existing organization, the lower are the barriers to entry for new competitors.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If organizations already in the task environment are large and enjoy significant economies of scale, their costs are lower than the costs that potential entrants will face, and newcomers will find it expensive to enter the industry.

The Greater the Economies of Scale of an Existing Organization