Which of the following IS NOT a potential barrier to entry?
A) Economies of scale
B) Agency costs
C) Switching costs
D) Capital requirements

Question

Quizplus · Accepted Answer

Agency costs are not a potential barrier to entry. They refer to the costs associated with ensuring that agents (employees) act in the best interest of principals (shareholders). Potential barriers to entry refer to factors that make it difficult for new firms to enter a market and compete with existing firms. Economies of scale, switching costs, and capital requirements are all potential barriers to entry.

Which of the Following IS NOT a Potential Barrier to Entry