For a manufacturer, access to distribution is a barrier to entry because
A)new entrants face a disadvantage from retailers who are reluctant to carry their new products.
B)retailers have limited capacity of distribution to offer to new entrants.
C)retailers are risk-averse.
D)carrying new products induces fixed costs.

Question

Quizplus · Accepted Answer

New entrants often face challenges because established retailers may be hesitant to carry unproven products, preferring to stick with known brands that have a track record of sales.

For a Manufacturer, Access to Distribution Is a Barrier to Entry