Which of the Following Constitutes a Barrier Limiting the Entry

question 75

Multiple Choice

Which of the following constitutes a barrier limiting the entry of potential competitors into a market?

• A) diseconomies of scale
• B) an elastic market demand for the product produced by the industry
• C) control over an essential resource
• D) a perfectly elastic demand curve

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Definitions:

Job Order Cost

The cost calculated for a specific customer order, taking into account direct labor, direct materials, and allocated overhead.

Process Cost Systems

Accounting systems used to apply costs to similar products that are mass-produced in a continuous fashion.

Direct Labor

The wages of employees who are directly involved in the production of goods or services.

Overhead Costs

Expenses related to the general operation of a business that are not directly tied to the production of goods or services, such as utilities and administrative salaries.