All Other Things Being Equal, Which of the Following Would

question 81

Multiple Choice

All other things being equal, which of the following would lead to lower barriers to entry in an industry?

• A) The existence of economies of scale in the industry
• B) Products are highly differentiated in the industry.
• C) Industry incumbents have learning-curve cost advantages.
• D) Raw materials are widely and readily available at a competitive price.

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Definitions:

Resource Labor

The work force considered as an economic resource, emphasizing the skills and abilities workers bring to the economy.

Marginal Output

The additional quantity of output that is produced by using one more unit of a particular input, holding all other inputs constant.

Fixed Resources

Assets and resources owned by a business or economy that cannot be easily changed in the short term, such as buildings and land.