Hospitals and universities are very expensive to run, not only due to the capital equipment that is required for each but also due to the personnel, such as specialized medical doctors and researchers. The cost of these types of institutions is an example of
A)a barrier to entry.
B)environmental uncertainty.
C)unfair competition.
D)high switching costs.
E)strategic maneuvering.

Question

Quizplus · Accepted Answer

The high cost of hospitals and universities creates a barrier to entry for new organizations trying to enter the market. The significant investment required to open and operate these institutions limits the ability of new competitors to enter the industry, making it difficult for them to compete with established players.

Hospitals and Universities Are Very Expensive to Run, Not Only