Which of the following could be a barrier to entry?
A)diseconomies of scale
B)a large number of buyers and sellers
C)a standardized product
D)economies of scale
E)diseconomies of scope

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that a firm obtains due to its size. As the firm grows, it is able to produce goods or services more efficiently, leading to a lower per-unit cost. This can create a barrier to entry, as new entrants may not have the resources or volume to achieve the same economies of scale and therefore cannot compete effectively.

Which of the Following Could Be a Barrier to Entry