Search costs, learning costs, and loyalty costs are examples of preemption barriers.

Name: Search costs, learning costs, and loyalty costs are examples of preemption barriers.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Preemption barriers, such as search costs, learning costs, and loyalty costs, are obstacles that prevent new competitors from entering a market because the incumbent firms have already captured key resources or customer loyalty, making it difficult and costly for new entrants to compete.

Search Costs, Learning Costs, and Loyalty Costs Are Examples of Preemption