Which of the Following Is a Potential Barrier to Entry

question 32

Multiple Choice

Which of the following is a potential barrier to entry into a monopoly market?

• A)Fixed costs are large relative to variable costs.
• B)Large economies of scale exist.
• C)The required infrastructure for an industry is high cost.
• D)All of these are potential barriers to entry.

---

Definitions:

Break-Even Point

The quantity of production or sales at which total revenues equal total expenses, resulting in no net loss or gain.

Variable Expenses

Costs or expenses that vary in direct proportion to changes in business activity levels, such as sales volumes or production output.

Unit Variable Cost

The cost that varies directly with the production of one additional unit of a product.

Marketing Manager

A professional role responsible for planning, executing, and overseeing marketing strategies and initiatives to promote products, services, or brands.