The more resources an industry requires,the harder it is to start a business and the less likely that the industry is dominated by small firms.

Question

Quizplus · Accepted Answer

The statement is true as industries that require high resources such as heavy machinery, expensive raw materials, advanced technology, skilled labor, etc., make it difficult for small firms to enter the market as they may not have sufficient resources, funds or expertise to compete with existing large firms. As a result, such industries are dominated by a few large firms that have greater resources and economies of scale to bear the costs and risks.

The More Resources an Industry Requires,the Harder It Is to Start