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:

Journal Entries

The method by which financial transactions are recorded in a company's accounting records in chronological order.

Cash

Liquid funds available for use in immediate transactions, held either in hand or in bank accounts.

Earnings Per Share

A measure of a company's profitability that calculates the amount of net income earned for each share of its common stock.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues, indicating financial performance over a period.