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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