When Are Sunk Costs a Most Effective Entry Barrier

question 5

Multiple Choice

When are sunk costs a most effective entry barrier?

• A)When the incumbent has incurred them and the entrant has not
• B)When incumbents have long-standing relationships with suppliers and customers
• C)When channels are few and hard to replicate
• D)When a firm has a reputation for toughness or competes in multiple markets
• E)When marginal costs are low and flooding the market causes large price reductions

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Definitions:

T Lymphocyte

A type of white blood cell that plays a central role in the immune response by attacking foreign invaders and cancer cells.

Memory T Cells

A type of T cell that remains in the body after an initial infection and helps to quickly respond to the same antigen upon re-exposure.

Antigenic Determinant

Specific part of an antigen that stimulates an immune system response by binding to receptors on the surface of lymphocytes; also called epitope.

Cell-mediated Immunity

A type of immunity where T cells directly attack infected or cancerous cells, as opposed to producing antibodies.