Itqualityassurance
- Which of the following industries has a low barrier to entry?
- Which of the following is least likely to present a barrier to entry into a market?
- Which of the following is generally not considered a barrier to entry?
Which of the following industries has a low barrier to entry?
The correct answer is E.
Retail business involves perfect competition whereby there is high competition and minimal restrictions to entrance into the market. Option A is incorrect because the most significant barrier to entry into the Automotive industry is economies of scale.
Which of the following is least likely to present a barrier to entry into a market?
The correct answer is b Deregulation. Patents laws will protect the intellectual property of inventors and will lead to the exclusive ownership of production rights for firms that innovate. This will serve as a barrier to entry and lead to the creation of a monopoly since there will be only one producer in this case.
Which of the following is generally not considered a barrier to entry?
The reaction of incumbent firms to rapid market development is generally not regarded as a barrier to entry, as an established firm's response to market changes would not limit or prevent new firms from entering the market.
