Asked by Kaitlyn Parker on Sep 24, 2024
Verified
Industries with high barriers to entry
A) Pushes profits to normal returns
B) Increases the likelihood of firms entering the industry
C) Help firms sustain long term profits
D) Increases the number of competitors
Barriers To Entry
Obstacles that prevent or hinder new competitors from easily entering an industry or area of business.
- Determine elements impacting earnings despite entry restrictions, including competing goods and the rate of growth within the sector.
Verified Answer
KP
kawal preet5 days ago
Final Answer :
C
Explanation :
Industries with high barriers to entry limit the number of firms that can enter the market, which can help existing firms sustain long-term profits. This is because the high barriers make it difficult for new firms to enter the industry and compete with established players.
Learning Objectives
- Determine elements impacting earnings despite entry restrictions, including competing goods and the rate of growth within the sector.
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