Question

Which of the following barrier(s) to entry into an industry is the most difficult to overcome?

Group of answer choices

Requires a relatively large capital investment.

Industry makes a product that is not critical to customers.

Industry has many firms, with two or three large firms.

Takes a relatively long time to learn about the technology.

Answer 1

To enter into an industry, it requires a relatively large capital investment.

Huge capital is required for set up a new business. Capital investment play a very important role in the functioning of a business. In each activity of business, capital invetment is required. To perform these activities effectively and efficiently, capital investment play a major role. Capital is an important factors of production. I t also help in acquring other factors of production like land,labour etc.

It is difficult to overcome this factor. It is most crucial barrier to enter into an industry.