Southern Ontario farmers have found it difficult to go into olive farming because olives imported from Europe are priced so much cheaper. Canadian farmers have to meet various climate challenges to grow olives and thus have higher expenses. Consumers prefer to buy the lower-priced imported olives rather than locally grown olives. The problems that make it unprofitable for an Ontario farmer to profitably become an olive farmer would be considered which of the following?
A) a purchasing power equalizer
B) a market contractionary tool
C) an oligopolistic tool
D) a barrier to entry

Question

Quizplus · Accepted Answer

The difficulties and challenges that prevent Southern Ontario farmers from entering the olive farming market are considered a Barrier to Entry. The lower-priced imported olives are a significant obstacle for domestic farmers, making it nearly impossible to enter the market profitably.

Southern Ontario Farmers Have Found It Difficult to Go into Olive