All categories

4 years ago

Explain two barriers to entry for a new business

Business

2 answers:

Marianna [84]4 years ago

6 0

Answer: Government regulation, Economies of scale

Explanation:

Barriers to entry refers to the restrictions that are imposed on the entry of a new firm or business into the market. These can be,

a). <em>Government regulation</em>- Sometimes the government puts many restrictions on the entry of a new firm. These can be license requirement or by limiting the availability of a resource.

b). <em>Economies of scale</em>- These refer to the efficiency in production that occurs when one firm grows larger in size and is able to cover the entire market at a lower cost than many small firms producing the same good in smaller quantities. The cost of production is lower for a single firm than for many firms.

sp2606 [1]4 years ago

4 0

For the answer tot he questions above, one of the barriers to entry is CAPITAL REQUIREMENTS. the financial resources required for infrastructure, machinery, R&D and advertising. Startups may get around capital requirements by outsourcing parts of the operation to companies that can leverage existing investments.
The other one is ACCESS TO DISTRIBUTION CHANNELS. This can be a barrier if logical distribution channels have been locked up by incumbents.

You might be interested in

Suppose two economists are arguing about policies that deal with unemployment. One economist says, " the government could lower

Nikitich [7]

Answer:

The correct answer is Disagree because they have different scientific judgements.

Explanation:

Obviously, what is demonstrated in the previous situation is that the two economists think differently. For this reason, they have different judgments from a training that allows them to recognize the events and propose alternatives to the problems presented.

Value judgments are the criticisms or comments that all people make towards other people or things depending on our perspectives or tastes.

Scientific judgments are always objective and are made with the scientific method, and are made with observation and verification.

We make moral judgments based on the "good or bad" human acts of a person and thus to discover their morality.

8 0

4 years ago

Which of the following statements about franchising is not true?

Natali [406]

The franchaiser may supply financing

3 0

3 years ago

Which of the following would not be an expected response from a decrease in the price level and so help to explain the slope of

Naddik [55]

Answer:

The correct option which would not be an expected response from decrease in price level is A) with fall in prices, Fargo concrete company has decided to let go workers who have fixed price contracts.

Explanation:

All the options except A are expected response from the fall in price and helps in explaining why the aggregate demand curve shifted ( towards the right ) . In the option B , Tyler decided to remodel his kitchen because of fall in prices, as now he is able to spend more on consumption and investment activities. Same thing is happening in option C and D as the company's here are increasing their investment spending due to the decreased prices.

But the option A , isn't something that was expected as company's don't usually fire their workers just because they have fixed price wage contract and prices have fallen, company is trying to take advantage of fallen prices by reducing the fixed wage workers and hiring new workers on a cheap wage , which help in reducing the company's cost.

6 0

4 years ago

Suppose that the annual rate of returns on dollar deposits equals 2% and the rate of return on euro deposits is 1%. Furthermore,

Oliga [24]

Answer:

I should invest in dollar deposits.

Explanation:

Current exchange rate is 1 euro = $1.08

Assuming I have y euro, the equivalent in dollar is $1.08y

Rate of return on dollar deposit = 2% = 0.02

Return on investment = $1.08y + (0.02 × $1.08y) = $1.08y + $0.0216y = $1.1016y

Rate of return on euro deposit = 1% = 0.01

Return on investment = y euro + (0.01 × y euro) = y euro + 0.01 y euro = 1.01y euro = 1.01y × $1.08 = $1.0908y

I should invest in dollar deposits because the return on investment is greater than euro deposits.

5 0

4 years ago

The sales budget for Modesto Corp. shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for p

ZanzabumX [31]

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the computation of the given data are as follows:

Beginning inventory = 2,.000 units

Ending inventory =2,000 + 2,000 × 20% = 2,400 units

Sold units = 20,000 units

So, we can calculate the budgeted purchase by using following formula:

Budgeted purchase = Sold units + Ending inventory - Beginning inventory

= 20,000 + 2,400 - 2,000

= 20,400 units

3 0

4 years ago