Which of the following is considered a barrier to entry?
A) Strong brand identification already exists in the industry.
B) Intellectual property that is legally protected may keep firms out of the industry.
C) Capital requirements are so high that few firms have the resources to enter.
D) all of the above

Question

Quizplus · Accepted Answer

All of the given options are barriers to entry. A strong brand identification already existing in the industry makes it difficult for new firms to establish their own brand. Intellectual property that is legally protected can prevent new firms from entering the market as they may not be able to create similar or better products due to legal limitations. High capital requirements make it difficult for new firms to invest and compete with existing firms in the industry.

Which of the Following Is Considered a Barrier to Entry