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.

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A mathematical proposition that claims equality between two expressions, generally involving variables.

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Matching is a process of pairing or associating items that are similar or correspond to each other, often used in educational settings or algorithms.

Equation

A statement that asserts the equality of two expressions, often containing one or more variables.