Which of the following are examples of barriers to entry?Multiple select question.The lack of a key resourceGovernment regulationsTaxes on profitsHigh start-up costs
Question
Which of the following are examples of barriers to entry?Multiple select question.The lack of a key resourceGovernment regulationsTaxes on profitsHigh start-up costs
Solution
The examples of barriers to entry are:
-
The lack of a key resource: This can be a barrier to entry if a certain resource is crucial to the business and it's not readily available or is controlled by existing companies.
-
Government regulations: These can also act as a barrier to entry. For example, if the government has strict regulations for a certain industry, it may be difficult for new companies to comply and therefore they may be deterred from entering the market.
-
High start-up costs: If it requires a large amount of capital to start a business in a certain industry, this can act as a barrier to entry as it may be difficult for new companies to raise the necessary funds.
-
Taxes on profits: This is not typically considered a barrier to entry. While taxes can affect the profitability of a company, they usually do not prevent a company from entering a market. Therefore, this is not a correct answer.
Similar Questions
Multiple Choice QuestionWhat is the term for factors that prohibit firms from entering an industry?Multiple choice question.Barriers to businessReduction of entryBarriers to entryLack of entry
State two examples of barriers to entry to a market. (2 marks
Multiple Select QuestionSelect all that applyWhat are the two legal barriers to entry created by the government?Multiple select question.Marginal costPatentsLicensesUnions
Consider the market structure of perfect competition. What does the lack of entry barriers indicate?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aAll firms will end up producing a unique and different productbThere are no significant obstacles preventing firms from entering and leaving the industrycNo new firms can enter an already-established industrydFirms can enter the industry easily but cannot exit the industry easily
The following are among the important barriers that commonly prevent other entering monopoly market except___
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.