For many years the Aluminum Company of America (Alcoa)controlled most of the world's supply of high quality bauxite, the ore needed to produce aluminum.What type of entry barrier was responsible for Alcoa's position in the aluminum industry?

Question

Quizplus · Accepted Answer

Alcoa's control over the supply of high-quality bauxite is an example of ownership of a key input, which is a type of entry barrier. Other firms would be at a disadvantage if they did not have access to the same high-quality bauxite, making it difficult for them to compete with Alcoa in the aluminum industry.

For Many Years the Aluminum Company of America (Alcoa)controlled Most