Economies of Scale Are a Barrier to Entry Because

question 4

Multiple Choice

Economies of scale are a barrier to entry because

• A)new entrants do not know where they are positioned on their learning curve.
• B)new entrants do not yet understand the scale economies so they cannot precisely determine their selling price.
• C)new entrants face a risk of price retaliation from the incumbents which could occur immediately on a large scale.
• D)new entrants face the cost and risk of creating large scale capacity to start with or a severe cost disadvantage if they enter on a smaller scale.

---

Definitions:

Leadership Categorization Theory

A theory that suggests people evaluate leaders based on how closely their behaviors and traits match prototypes of leadership.

Perceived Characteristics

Attributes or qualities that are believed or seen to exist in something or someone.

Leader Behaviours

Actions and attitudes exhibited by leaders that influence their team's performance and morale.

Leadership Effectiveness

measures the extent to which a leader is successful in achieving desired outcomes, influencing others, and fulfilling leadership roles and responsibilities.