Barriers to entry represent factors associated with:
A)a market and/or firms currently operating in the market that make it more expensive and difficult to enter that market
B)a market and/or firms currently operating in the market that make it more expensive and difficult to leave that market
C)differentiation strategies in which a firm maximises its returns by emphasising products of a lower quality than those found in markets without barriers to entry
D)the presence of above-average returns for a firm

Question

Quizplus · Accepted Answer

Barriers to entry are factors that make it more difficult and expensive for new firms to enter a market, such as high startup costs, economies of scale, legal and regulatory barriers, brand recognition, and access to distribution channels. These barriers can give existing firms a competitive advantage and limit the threat of new entrants.

Barriers to Entry Represent Factors Associated With