Question

multiple select question
select all that apply
which of the following are examples of barriers to entry? more than one answer may be correct.
distribution access
capital requirements
taxes on profits
advertising expenditures

Explanation:

Barriers to entry are obstacles that make it difficult for new firms to enter a market. Distribution access can limit new - comers' ability to get their products to customers. High capital requirements mean new firms need a large amount of money to start up. Advertising expenditures by existing firms can create brand loyalty, making it hard for new entrants. Taxes on profits are a cost of doing business but not typically a barrier to entry as they affect all firms in the market, not just new ones.

Answer:

A. distribution access
B. capital requirements
D. advertising expenditures