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3 years ago

Explain two barriers to entry for a new business

Business

2 answers:

Marianna [84]3 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]3 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.

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Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning

wolverine [178]

Answer:

$6.7 per direct labor hour

Explanation:

Given:

Direct labor-hours = 20,000

Fixed manufacturing overhead cost = $94,000

variable manufacturing overhead = $2.00 per direct labor-hour

Actual manufacturing overhead cost for the year = $123,900

Actual total direct labor = 21,000 hours

Now,

Total Estimated Manufacturing Overhead

= 94000 + ( 2 × 20000 )

= $134,000

And,

Predetremined Overhead Rate = $\frac{\textup{Estimated Maufacturing Overhead}}{\textup{Estimated Direct Labor Hours.}}$

Predetremined Overhead Rate = $\frac{\textup{134,000}}{\textup{20000}}$

Predetremined Overhead Rate = $6.7 per direct labor hour

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3 years ago

Symbic Foods, a chain of fast food restaurants, has included a drop-down menu on its main Web site. With this drop-down menu, pe

Makovka662 [10]

Answer: Marketing Strategy

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2 years ago

A balance is _____.

SpyIntel [72]

The amount of money you have in your account

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2 years ago

Read 2 more answers

What annual rate of return is implied on a $2,500 loan taken next year when $5,375 must be repaid in year 6? (Do not round inter

Zarrin [17]

Answer:

16.54%

Explanation:

We have to applied the rate formula that is shown in the attachment.

The NPER shows the time period.

Given that,

Present value = $2,500

Future value or Face value = $5,375

PMT = $0

NPER = 6 years - 1 years = 5 years

The formula is shown below:

= Rate(NPER,PMT,-PV,FV,type)

The present value come in negative

So, after solving this, the annual rate of return is implied is 16.54%

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2 years ago

Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can

Ierofanga [76]

The true statement out of all is

B) Georgeland has both an absolute and a comparative advantage in producing clothing.

Explanation:

This is because Absolute advantage is when one firm or a producer is able to produce more of a product using less resources or less time or more of the product in the same resources or same time as the other.

Comparative advantage is found out at the added bonus of having the product be as viable as it is advantageous which means that the producer could also be making another product and would have the advantage in that too so either one of them is equally profitable.

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3 years ago