Question

Which of the following would be an entry barrier?

1) large economies of scale
2) low switching costs
3) easy access to raw materials
4) low capital requirements

Answer 1

Large economies of scale would be considered an entry barrier, while low switching costs, easy access to raw materials, and low capital requirements are not entry barriers.

Step-by-step explanation:

In the context of barriers to entry in a market, a large economies of scale would be considered an entry barrier. This means that a business needs to operate at a certain scale in order to be cost-effective and competitive, making it difficult for new entrants to match the efficiency and production levels. On the other hand, low switching costs, easy access to raw materials, and low capital requirements are not entry barriers because they do not present significant obstacles for new competitors entering the market.