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:

Impaired Gas Exchange

A condition in which there is an obstruction in the transfer of oxygen from the lungs to the blood, often leading to decreased oxygenation.

Pneumonia

An inflammatory condition of the lung affecting primarily the small air sacs known as alveoli, typically caused by infection.

Alveolar Inflammation

Refers to the inflammation of the alveoli, the tiny air sacs in the lungs responsible for gas exchange.

Herbal Supplements

Products made from plants for medicinal purposes, taken to supplement the diet or improve health.