Which of the following is not an example of a barrier to entry?

Which of the following is not an example of a barrier to entry?

a. lower costs

b. scarce land

c. extreme start-up costs

d. heavy government regulations

Answer: a. lower costs

They include factors that make it difficult for new firms or businesses to venture into a certain market or industry. These barriers can also be in the form of; availability of land or resources, capital intensity where high start-up costs are needed, or restriction by government policies details or licensing procedures. However, this means that cost is not a strong entry barrier, although it is worthy of consideration. Instead, cost advantage benefits newcomers and allows offering products or services at cheaper prices than incumbents’ prices. Market entrance may also be achieved by driving down the price of products to gain a portion of the market share from other existing organizations.