Which of the following are barriers to entry?
I. Large economies of scale required to be profitable
II. Established brand loyalty
III. Patent protection for the firm's product
IV. Rapid industry growth
A) I and II only
B) I, II, and III only
C) II, III, and IV only
D) III and IV only

Question

Quizplus · Accepted Answer

Large economies of scale required to be profitable (I), established brand loyalty (II), and patent protection for the firm's product (III) are all examples of barriers to entry. Rapid industry growth (IV) would not be a barrier to entry as it suggests potential for new entrants to come in and capture some of the growth.

Which of the Following Are Barriers to Entry