Which of These Is an Example of a Barrier to Entry

question 8

Multiple Choice

Which of these is an example of a barrier to entry?

• A)the lack of well-trained employees who have years of experience in a specialized area
• B)government regulations that set few or no restrictions on establishing a business in that field
• C)the ability to manufacture components or products in small quantities
• D)the ability to specialize in one specific type of product for a niche audience

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Definitions:

Fixed Costs

Fixed costs are expenses that do not fluctuate with changes in production volume or business activity levels.

Service Department

An organizational unit that provides support to the main production operations, often through maintenance, logistics, or administrative services.

Order Fulfillment Department

The division within a company that is responsible for processing customer orders and ensuring they are delivered to the correct address in a timely manner.

Variable Costs

Costs that change in proportion to the level of goods or services produced or sold.