Which of the following is generally NOT considered a barrier to entry?
A) Restrictive regulatory policies
B) High capital requirements
C) Strong brand preferences
D) Many industry patents in place
E) Weak "network effects" in customer demand

Question

Quizplus · Accepted Answer

Weak "network effects" in customer demand is generally not considered a barrier to entry as it means that a new entrant could potentially attract customers without facing strong loyalty to established brands or products. A, B, C, and D are all considered traditional barriers to entry as they create obstacles for new firms to enter the market and compete with established players.

Which of the Following Is Generally NOT Considered a Barrier