As a Barrier to New Entry, Absolute Cost Advantages Can

Multiple Choice

As a barrier to new entry, absolute cost advantages can be based on:

A) continuous advertising of brand and company names, and product innovation achieved through research and development.
B) high product quality, service-oriented innovations, and good after-sales service.
C) cost reductions that arise from the mass production of standardized output.
D) the unique ability of established companies to spread fixed costs over a large volume.
E) superior production operations and processes due to accumulated experience, patents, or trade secrets.