Hospitals and universities are very expensive to run because of the capital and equipment required. The requirement of personnel such as specialized medical doctors and researchers are also high. Which of the following is this an example of?

Question

Quizplus · Accepted Answer

This is an example of barriers to entry, where the high capital and equipment requirements and the need for specialized personnel make it difficult for new entities to enter and compete in the industry.

Hospitals and Universities Are Very Expensive to Run Because of the Capital