Always Round Tire Has Been in the Tire Business Since

Multiple Choice

Always Round Tire has been in the tire business since 1963. They have several plants with different levels of technology. They are organized by the United Rubber Workers union. Over the years, the company has worked with its employees to figure out how to produce a tire for less. This incumbent advantage over potential newcomers is the:

A) result of scale economies.
B) impact of licenses and patents.
C) clear threat of using its excess capacity.
D) effect of its learning curve.