During a recent holiday season, Half-Life 2 sold 120 million copies during the first 24 hours. This either directly or indirectly affects the factor of __________ that serves as a barrier to entry.

Question

Quizplus · Accepted Answer

The massive sales of Half-Life 2 during the first 24 hours can lead to economies of scale for the producer, as the high volume of sales can reduce the cost per unit through the spreading of fixed costs over a larger number of units. This can serve as a barrier to entry for new competitors who cannot match these lower costs.

During a Recent Holiday Season, Half-Life 2 Sold 120 Million