Which of the Following Is NOT a Barrier to Entry

question 24

Multiple Choice

Which of the following is NOT a barrier to entry?

• A) Economies of scale
• B) Brand loyalty
• C) Absolute cost advantages
• D) High customer bargaining power
• E) High customer switching costs

---

Definitions:

Capital Expenditures

Investments in physical assets like property, plant, and equipment, which are expected to improve a company’s future productive capacity.

Operating Efficiency

A metric that indicates the ratio of output gained to the input expended in the business process.

Extend Its Useful Life

The process of prolonging the period over which an asset can productively be used, often through maintenance or improvements.

Functional Depreciation

The decrease in the usefulness or value of an asset due to advancements in technology or changes in market demands, rather than physical wear and tear.