How Can a Company's Research and Development Expenditures Create a Barrier

Multiple Choice

How can a company's research and development expenditures create a barrier to entry into its market?

A) It increases switching costs, which means companies cannot change production techniques.
B) It generates larger network effects for the product.
C) It prevents learning by doing, which keeps consumers from learning about new options.
D) It can result in new production technologies that reduce the cost of production.