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The barriers to entry in a capital-intensive industry such as airlines or petroleum are higher because…
Question: The barriers to entry in a capital-intensive industry such as airlines or petroleum are higher because…
- The market for the good is very large
- Acquired capital can be easily redeployed for use in other industries
- Capital investments cannot be recovered if the firm exits the industry
- Financing for capital investment is easily secured
Answers: Capital investments cannot be recovered if the firm exits the industry
Conclusion of The barriers to entry in a capital-intensive industry such as airlines or petroleum are higher because…
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