Entry barriers in the embryonic stage are frequently based on
A) brand loyalty.
B) economies of scale.
C) absolute cost advantages.
D) economies of scope.
E) technological know-how.

Question

Quizplus · Accepted Answer

In the embryonic stage, technological know-how is crucial in creating entry barriers. This can include patents, trade secrets, and other proprietary knowledge that competitors may find difficult to replicate. Brand loyalty, economies of scale, and economies of scope are typically developed in later stages of the industry life cycle, while absolute cost advantages may not yet be present in the embryonic stage.

Entry Barriers in the Embryonic Stage Are Frequently Based on