Which of the following is generally not considered as a barrier to entry?
A)Rapid market growth
B)Sizable capital requirements and an array of regulatory requirements
C)Strong buyer loyalty to existing brands
D)Sizable economies of scale in production
E)Difficulties in gaining access to distribution and securing adequate space of retailers' shelves

Question

Quizplus · Accepted Answer

Rapid market growth generally indicates an opportunity for new companies to enter the market and establish themselves. It is not considered as a barrier to entry.

Answer: C
 Strong buyer loyalty to existing brands can make it difficult for new companies to convince consumers to switch to their products. It is often considered a barrier to entry.

Answer: D
 Sizable economies of scale in production can create a cost advantage for existing companies and make it difficult for new entrants to compete. It is often considered a barrier to entry.

Answer: B and E
 Sizable capital requirements, an array of regulatory requirements, difficulties in gaining access to distribution, and securing adequate space on retailers' shelves are all significant barriers to entry.

Which of the Following Is Generally Not Considered as a Barrier