Which of the following is not a type of "lock-in" that acts as a barrier to entry into a particular market?
A)Pricing at or below the average cost of production.
B)Purchases of durable goods.
C)Loyalty programs.
D)Specialized suppliers.

Question

Quizplus · Accepted Answer

Pricing at or below the average cost of production is not a type of "lock-in" that acts as a barrier to entry. In fact, it may attract more competitors to the market as it may force existing firms to lower their prices, making it easier for new entrants to compete. The other options, purchases of durable goods, loyalty programs, and specialized suppliers, all create some form of lock-in that makes it more difficult for new entrants to compete.

Which of the Following Is Not a Type of "Lock-In