Which of the Following Factors Most Contributes to the U

question 19

Multiple Choice

Which of the following factors most contributes to the U.S. automotive industry being characterized by high entry barriers?

• A) New auto companies create electric cars powered by simpler motors and gearboxes.
• B) New entrants in the automotive industry expect that incumbents will not or cannot retaliate.
• C) Car manufacturers require large-scale production in order to be cost-competitive.
• D) Few industrial products are as easy to build as cars powered by internal combustion engines.

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Definitions:

Discharged

Refers to the completion of an obligation or debt, relieving the individual or entity of further responsibilities.

Severable Contracts

Agreements composed of independent clauses or sections, where the invalidation of one part does not necessarily void the entire contract.

Independent Contracts

Agreements between individuals or organizations where one party offers services to another as a non-employee.

Exculpatory Agreement

A contract provision that relieves one party of liability if damages are caused during the execution of the contract.