Which of the Following Is Not a Barrier to Entry

question 219

Multiple Choice

Which of the following is not a barrier to entry in an industry?

• A) economies of scale
• B) profit maximization
• C) strategic pricing
• D) government licensing

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Definitions:

Fixed Manufacturing Overhead

Represents the consistent costs associated with manufacturing that do not fluctuate with the level of production, such as rent, salaries, and equipment depreciation.

Direct Labor Cost

The wages and other compensation paid to employees who are directly involved in the production of goods or services.

Variable Costing

An accounting method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs, excluding fixed overhead.

Direct Labor Cost

The total cost of labor directly involved in the production of goods, including wages and benefits.