Which of the following reasons might serve as a barrier to entry within the hospital services industry?

Question

Quizplus · Accepted Answer

A) Scale economies refers to the cost advantages that a company can achieve due to its size, such as discounts on bulk purchasing. Hospitals can achieve significant cost advantages due to their size, making it difficult for new entrants to compete.
B) Standardized products also represent a barrier to entry, as hospitals provide highly regulated services that must meet certain standards of care. It can be challenging for new entrants to meet these standards.
C) Certificate of need regulations require hospitals and other healthcare providers to obtain government approval before expanding or adding new services. This can be a significant barrier to entry, as governments limit the number of healthcare providers in a given area.
Therefore, both scale economies and certificate of need regulations are barriers to entry within the hospital services industry.

Which of the Following Reasons Might Serve as a Barrier