Which of the Following IS NOT a Potential Barrier to Entry

question 72

Multiple Choice

Which of the following IS NOT a potential barrier to entry?

• A) Economies of scale
• B) Agency costs
• C) Switching costs
• D) Capital requirements

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Definitions:

Variable Cost

Costs that vary directly with the level of production or services provided, such as materials and labor.

Net Income

The total profit or loss of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Fixed Cost

A cost that does not change with an increase or decrease in the number of goods or services produced or sold.

Production Costs

Direct costs associated with the manufacturing of goods, including labor, materials, and overhead expenses.