If Economies of Scale Are an Industry's Primary Entry Barrier

question 5

Multiple Choice

If economies of scale are an industry's primary entry barrier, a new entrant's major concern is:

• A) its inability to counter brand loyalty that customers have for established companies in the industry.
• B) the inferior quality of its products.
• C) its inability to match the innovation of the established firm.
• D) its inability to produce in sufficient volume to match the cost advantages of established producers.
• E) its inability to get buyers to switch to its product.

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Definitions:

Leadership Styles

Various approaches to leadership, such as authoritarian, democratic, and laissez-faire, each with its own methods and effects.

Collective Needs

The requirements or desires shared by a group of people that are essential to the well-being of the community as a whole.

Leadership Style

Describes the way a leader provides direction, implements plans, and motivates people.

Miserable

A state of great discomfort or unhappiness, often used to describe someone's emotional condition.