If Economies of Scale Are an Industry's Primary Entry Barrier

question 43

Multiple Choice

If economies of scale are an industry's primary entry barrier, a new entrant's major concern is:

• A)its inability to counter brand loyalty that customers have for established companies in the industry.
• B)the inferior quality of its products.
• C)its inability to match the innovation of the established finn.
• D)its inability to produce in sufficient volume to match the cost advantages of established producers.
• E)its inability to get buyers to switch to its product.

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Definitions:

Savings

The difference between the number of repetitions originally required to learn a list and the number of repetitions required to relearn the list after a certain amount of time has elapsed.

Repetitions

The act of doing or saying something several times, often for learning, emphasis, or effect.

Verbal Memories

The aspect of memory that deals with the recall and recognition of words and language.

Hippocampus

A region of the brain associated with memory formation, learning, and emotions.