Which of the following is NOT a barrier to entry?
A) Economies of scale
B) Brand loyalty
C) Absolute cost advantages
D) High customer bargaining power
E) High customer switching costs

Question

Quizplus · Accepted Answer

High customer bargaining power is not a barrier to entry. It means customers have the power to negotiate prices or terms of purchase, which may result in lower profit margins for the company but it does not prevent new companies from entering the market. The other options (A, B, C and E) are all barriers to entry, as they make it difficult or costly for new firms to enter the market and compete with existing players.

Which of the Following Is NOT a Barrier to Entry