Which of the following examples explains how high cost of entry prevents potential entrants from entering an oligopolistic market?
Brittney's Bakery makes chocolate chip cookies. She is a price taker in the market for baked goods.
Jim's Jumbo Shrimp Company sells a product for which there are no substitutes.
Sam's Seafood has a monopoly on bay oysters, so no other companies may enter the market.
John's Band-aid Company cannot compete with Johnson & Johnson due to economies of scale.© BrainMass Inc. brainmass.com April 3, 2020, 8:55 pm ad1c9bdddf
John's Band-aid Company cannot compete with Johnson & Johnson due to economies of scale.
I will say this is the option because ...
This solution analyzes economies of scale. The expert determines how to prevent potential entrants from entering oligopolistic market.