The Difference Between Barriers to Entry and Barriers to Mobility

question 33

Multiple Choice

The difference between barriers to entry and barriers to mobility is:

• A)The sources of barriers to mobility are different than the sources of barriers ot mobility
• B)There is no real difference
• C)Barriers to mobility are less effective than barriers to entry
• D)Barriers to entry protect the industry as a whole whereas barriers to mobility protect segments within the industry

---

Definitions:

Marginal Cost

The additional cost incurred in producing one more unit of a good or service.

Variable Cost

Costs that change in proportion to the level of production or sales activity of a business.

Total Cost

The overall expense incurred in the production of goods or services, including both fixed and variable costs.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, or insurance premiums.