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

The correct answer is requires a relatively large capital investments.

Explanation: there are different type of market structure in the economy and in all those structures the most difficult task for the business owner is to raise large amount of capital in order to finance all the needs of the business organization. Capital investment is the amount of money that a business organization needs in order to manage day to day expenses. If enough capital is not available then business cannot produce goods according to the preferences of customers, it cannot cope up with thr competitors, and neither it can adopt latest technologies.

hence, capital investment is one of the biggest and difficult barrier to entry into an industry. Therefore a business man must ensure capital sources and capital amount before entering into an industry

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