As a barrier to new entry,absolute cost advantages can be based on
A) continuous advertising of brand and company names.
B) high product quality, service-oriented innovations, and good after-sales service.
C) cost reductions that arise from the mass production of standardized output.
D) the unique ability of established companies to spread fixed costs over a large volume.
E) control over low-cost inputs required for production, be they labor, materials, equipment, or management skills.

Question

Quizplus · Accepted Answer

Absolute cost advantages can be based on control over low-cost inputs required for production, which allows established companies to produce at lower costs than new entrants.

As a Barrier to New Entry,absolute Cost Advantages Can Be