Shelly Brunner Owns a Sports Themed Restaurant Which Is Located

question 33

Multiple Choice

Shelly Brunner owns a sports themed restaurant which is located in an upscale business district in Chicago. One advantage that Shelly has is that she bought the lot she built her restaurant on 25 years ago when lots in the area were selling for $50,000. Shelly knows that several potential competitors have looked at bare lots near his business but haven't been willing to pay the asking prices, which are as high as $500,000. Which of the six major sources of barriers to entry is causing a disincentive for new firms to enter Shelly's industry?

• A) capital requirements
• B) economies of scale
• C) product differentiation
• D) government and legal barriers
• E) cost advantage independent of size

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Definitions:

Mexicans

Referring to the people of Mexico or persons of Mexican descent, their culture, or nationality.

Large-Scale Entry

Refers to entering or participating in a market or industry on a extensive scale, typically implying significant resources or capacity.

Spanish-American War

A conflict in 1898 between Spain and the United States, triggered by America's intervention in Cuba's struggle for independence.

Koreans

Individuals or peoples originating from Korea, a region in East Asia divided into two separate nations, North Korea and South Korea.