Question

As a barrier to new entry, absolute cost advantages can be based on:

Answer 1

Answer:

E. superior production operations and processes due to accumulated experience, patents, or trade secrets.

Explanation:

The absolute cost advantages Is an economic principle which states: than a firm has absolute cost advantages when using the same amount of resourses than a competitor is able to produce or sell more of a good or service.

From the given options:

E is the correct as: It represent the better use of the same raw material, machinery and labor hours to generate a better output than competitors.