Which of the Following Can Create a Barrier to Entry

question 16

Multiple Choice

Which of the following can create a barrier to entry?

• A) Small capital investment required
• B) Patents
• C) Minimal training needed
• D) Can be done from home
• E) Low labour costs

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Definitions:

Total Fixed Costs

The sum of all costs that do not change with the level of output or sales, over a specific period.

Level of Activity

A measure of the volume or quantity of production or operations in a given period, often used in cost accounting to analyze costs.

Mixed Cost

An expense that contains both fixed and variable components, changing with the level of output but also incurred when there is no output.

Variable Costs

Costs that change in proportion to the level of production or sales activity, such as materials and labor directly involved in a company's product.