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.

---

Definitions:

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development of human beings.

Industry Versus Inferiority

A stage in Erik Erikson's theory of psychosocial development where children develop a sense of competence through mastering tasks.

Psychosocial Stages

A theory proposed by Erik Erikson, which posits that individuals go through eight developmental stages, each involving a specific conflict that must be resolved.

Erikson

A developmental psychologist known for his theory on the psychosocial development across eight stages from infancy to adulthood.