All of the following are barriers to entry except
A) network effects.
B) control of scarce resources.
C) externalities.
D) economies of scale.

Question

Quizplus · Accepted Answer

Externalities are not considered barriers to entry. Barriers to entry are factors that prevent or hinder companies from entering a specific market. While network effects, control of scarce resources, and economies of scale can make it difficult for new entrants to compete, externalities refer to the cost or benefit that affects a party who did not choose to incur that cost or benefit, which does not directly relate to the difficulty of entering a market.

All of the Following Are Barriers to Entry Except