Question

Within an industry, the existing economies of scale, brand loyalties, and government regulations that impede access to the task environment create

Answer 1

Answer:

The barrier to entry, is the right answer.

Explanation:

The barrier to entry is the correct answer because the mentioned points like economies of scale, government rules, and brand loyalties are the tools that restrict the entry of new firms. For example, if the incumbent firm has already brand value then the new firm will not attract the consumer because consumers will prefer to buy goods from that company. Thus, if consumers will not buy the commodity then it will fail to do the business. Moreover, government regulations like licensing also restrict new firms. A firm can not enter the market without taking a license from the government.