High training costs make it more costly for consumers to switch products.This is an example of
A)Contestable markets.
B)Cartels.
C)Government regulation.
D)Barriers to entry.

Question

Quizplus · Accepted Answer

High training costs act as a barrier to entry for new firms, making it more difficult for them to enter the market and compete with established firms. This reduces the threat of new entrants, creating a barrier to entry for new competitors and reducing competition. As a result, existing firms can charge higher prices, which ultimately makes it more costly for consumers to switch products. Therefore, this scenario is an example of barriers to entry.

High Training Costs Make It More Costly for Consumers to Switch