If a seller can develop large enough _____ compared to other sellers in the market, this will deter the entry of new sellers.
A)cost advantages
B)marginal costs
C)competitive forces
D)costs

Question

Quizplus · Accepted Answer

If a seller has cost advantages, it means they can produce at a lower cost compared to other sellers in the market. This makes it difficult for new sellers to enter and compete because they cannot match the lower costs of the established seller. Thus, having a large enough cost advantage will deter the entry of new sellers. Marginal costs and costs alone may not necessarily provide a competitive advantage, and competitive forces refer to the external factors affecting a market, not a specific seller's advantage.

If a Seller Can Develop Large Enough _____ Compared to Other