Are Barriers to Entry Effective

question 56

Multiple Choice

Are barriers to entry effective?

• A)Yes, because long-term empirical evidence shows that industries with high barriers to entry exhibit higher returns on investment on average.
• B)Yes, because once established they are irreversible.
• C)No, because firms can overcome these barriers by modifying their strategies.
• D)No, because higher returns attract more new entrants who want to benefit from higher returns than in non-protected industries.

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Definitions:

Equal Employment Opportunity Commission

A federal agency in the United States responsible for enforcing federal laws that make it illegal to discriminate against a job applicant or an employee because of the person's race, color, religion, sex, national origin, age, disability, or genetic information.

Employer Guidelines

A set of directions or rules provided by an employer to outline expected behaviors and procedures within the workplace.

National Origin

Refers to the country or geographic region where an individual was born or where their ancestors came from, often considered in anti-discrimination policies.

Essential Job Functions

The fundamental duties and responsibilities that are core to a particular job, which must be performed by the employee holding that position.