When Economists Talk About a Barrier to Entry, They Are

question 251

Multiple Choice

When economists talk about a barrier to entry, they are referring to

• A) a factor that makes it difficult for potential competitors to enter a market.
• B) the opportunity cost of equity capital that is incurred by a firm producing at minimum total cost.
• C) the downward-sloping portion of the long-run average total cost curve.
• D) the declining output experienced as additional units of a variable input are used with a given amount of a fixed input.

---

Definitions:

Employee Selection

The process of interviewing, assessing, and choosing the right candidates for employment to fill available positions in an organization.

Interviewing

A method used by organizations to assess potential candidates for a job, often involving a series of questions to evaluate their qualifications and compatibility with the company culture.

Incentive-Pay Program

A compensation strategy designed to reward employees based on their performance or achievement of specific goals.

Profit-Sharing Plan

A plan in which employees receive additional compensation based on the profitability of the entire business.