Economies of Scale Are a Barrier to Entry Because

Multiple Choice

Economies of scale are a barrier to entry because:

A) New entrants do not know where they are positioned on their learning curve
B) New entrants do not know the economies they can generate in the future and therefore cannot precisely determine their selling price
C) New entrants face a risk of retaliation from the incumbents which could occur immediately on a large scale and start a price war as a deterrent of their entry
D) New entrants face the cost and risk of creating large scale capacity to start with or a severe cost disadvantage if they enter on a smaller scale