Which of the Following Is Generally Not Considered as a Barrier

question 70

Multiple Choice

Which of the following is generally not considered as a barrier to entry?

• A) rapid market growth
• B) sizable capital requirements and an array of regulatory requirements
• C) strong buyer loyalty to existing brands
• D) sizable economies of scale in production
• E) difficulties in gaining access to distribution and securing adequate space of retailers' shelves

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Definitions:

Rationing Mechanism

A system or method used to distribute scarce goods or services among competing users.

Price Floor

A government- or authority-imposed minimum price that can be charged for goods and services, typically above the equilibrium price, to prevent prices from falling too low.

Surplus

A situation where the quantity supplied of a product exceeds the quantity demanded at a specific price.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a stable market condition where there is no tendency for change.