Barriers to Entry & Exit

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Economic entry/exit obstacles

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MOHD FAIZAL AZRUL AZWAN MUHAMED @ CHE HARUN

Malaysia

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Barriers to Entry & Exit


Froggy Jumps Barriers to Entry & ExitOnline version Economic entry/exit obstacles by MOHD FAIZAL AZRUL AZWAN MUHAMED @ CHE HARUN 1 Which barrier refers to the high cost of starting production that discourages new firms from entering? a High capital requirements b Flexible pricing strategy c Low consumer demand 2 What is a strategic barrier used by incumbents to deter entrants by strengthening their market position? a Predatory pricing or capacity control b Public ownership c Deregulation 3 Which barrier involves firms needing specialized machinery tied to specific outputs, hindering exit or entry? a Market symmetry b Asset specificity c Generalized equipment 4 Which barrier arises from vast economies of scale that make average costs fall with output, blocking small entrants? a Economies of scale b Product differentiation c Elastic demand 5 A barrier where existing firms have strong customer loyalty and brand power that entrants struggle to match is? a Low fixed costs b Brand loyalty / network effects c Short-term contracts 6 Which barrier refers to legal restrictions, licenses, or regulations that raise entry costs? a Technological barriers b Seasonal demand c Regulatory barriers 7 What exit barrier involves high sunk costs and irreversibility of investments when leaving a market? a High exit costs (sunk costs) b Low switching costs c Flexible asset redeployment 8 Which barrier is created by customer switching costs, making buyers reluctant to change suppliers? a Switching costs b Mass advertising c Price competition 9 Which barrier occurs when essential infrastructure is controlled by a few firms, limiting new entrants? a Digital marketing b Access to essential facilities c Globalization 10 What barrier describes government-imposed limits or tariffs that protect incumbents from foreign entrants? a Free trade policies b Universal licensing c Trade restrictions / protectionism

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Barriers to Entry & Exit

Froggy Jumps

About this activity

Created by

Download the paper version to play

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Barriers to Entry & ExitOnline version

by MOHD FAIZAL AZRUL AZWAN MUHAMED @ CHE HARUN

Which barrier refers to the high cost of starting production that discourages new firms from entering?

What is a strategic barrier used by incumbents to deter entrants by strengthening their market position?

Which barrier involves firms needing specialized machinery tied to specific outputs, hindering exit or entry?

Which barrier arises from vast economies of scale that make average costs fall with output, blocking small entrants?

A barrier where existing firms have strong customer loyalty and brand power that entrants struggle to match is?

Which barrier refers to legal restrictions, licenses, or regulations that raise entry costs?

What exit barrier involves high sunk costs and irreversibility of investments when leaving a market?

Which barrier is created by customer switching costs, making buyers reluctant to change suppliers?

Which barrier occurs when essential infrastructure is controlled by a few firms, limiting new entrants?

What barrier describes government-imposed limits or tariffs that protect incumbents from foreign entrants?