alleryStart learning →Spreading fixed costs over more units to cut unit cost is which barrier?
ADemand-side benefits of scale
BCustomer switching costs
CSupply-side economies of scale
DIncumbency advantages
Answer & Solution
Correct answer: C. Supply-side economies of scale
Spreading fixed costs over a larger volume lowers cost per unit, forcing entrants to accept a price disadvantage or enter at large scale.
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