A barrier to entry is:
A)Anything that facilitates the entry of would-be new entrants in a specific industry
B)Capital requirements, cost advantages, and product differentiation
C)A law restricting trade.
D)Anything that makes entry into an industry as a new competitor more difficult, more costly, slower or even impossible.

Question

Quizplus · Accepted Answer

A barrier to entry is anything that makes it difficult or costly for a new competitor to enter an industry, such as high capital requirements, product differentiation or cost advantages. It can be a natural or artificial constraint, but in any case, it restricts the degree of competition within an industry. A law restricting trade, while it can be considered a barrier to entry in certain situations, does not cover the full scope of what a barrier to entry encompasses.

A Barrier to Entry Is