For a Manufacturer Access to Distribution Is a Barrier to Entry

question 59

Multiple Choice

For a manufacturer access to distribution is a barrier to entry because:

• A)New entrants face a disadvantage regarding retailers who are reluctant to carry their new products
• B)Retailers have limited capacity of distribution to offer to new entrants
• C)Retailers are risk-averse
• D)Carrying new products induces fixed costs

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Definitions:

Associating Two Stimuli

The process of forming a connection or association between two different stimuli, a foundational concept in classical conditioning.

Sensitization

An increase in behavioral response after exposure to a stimulus.

Habituation

The diminishing response to a frequently repeated stimulus over time.

Observational Learning

A learning process through which behaviors are acquired by watching and imitating the actions of others, also known as modeling.