All other things being equal, which of the following would lead to lower barriers to entry in an industry?
A) The existence of economies of scale in the industry
B) Products are highly differentiated in the industry.
C) Industry incumbents have learning-curve cost advantages.
D) Raw materials are widely and readily available at a competitive price.

Question

Quizplus · Accepted Answer

If raw materials are widely and readily available at a competitive price, then new entrants can enter the market easily without any significant obstacles. This would lead to lower barriers to entry in the industry.

All Other Things Being Equal, Which of the Following Would