Economies of Scale Are a Barrier to Entry Because

Multiple Choice

Economies of scale are a barrier to entry because:

A) New entrants are positioned at the top of their learning curve
B) New entrants are uncertain about their future costs which discourages then from making investments
C) New entrants face a risk of retaliation from the incumbents whose large scale of operation allows them to flood the market
D) New entrants face high unit costs either because they enter at sub-optimal scale,or they make a large-scale entry that initially operates with substantial excess capacity