Entry barriers in the embryonic stage are frequently based on
A) brand loyalty.
B) technological know-how
C) absolute cost advantages.
D) economies of scope.
E) economies of scale

Question

Quizplus · Accepted Answer

In the embryonic stage, entry barriers are often based on technological know-how. This means that new entrants may not have the same level of expertise or access to technology as established firms in the industry, making it more difficult for them to create a competitive product or service. Other entry barriers like economies of scale or scope may develop later on in the industry lifecycle. Brand loyalty and absolute cost advantages may also be factors, but they are typically not as significant as technological know-how in the embryonic stage.

Entry Barriers in the Embryonic Stage Are Frequently Based on