Conditions that may prevent new firms from entering an industry are referred to as
A)barriers to entry.
B)strategic maneuvers.
C)unfair trade practices.
D)industry regulators.
E)entry inhibitors.

Question

Quizplus · Accepted Answer

Barriers to entry refer to conditions that make it difficult or costly for new firms to enter an industry, such as high start-up costs, economies of scale favoring larger firms, government regulations, and brand recognition. These barriers can prevent new firms from entering the industry and can result in higher profits for existing firms.

Conditions That May Prevent New Firms from Entering an Industry