Some industries, like the athletic shoe industry, are dominated by a small number of firms with strong brands. These industries are difficult to break into without spending heavily on advertising.
The barrier to entry that the firms in these types of industries have erected is referred to as ________.
A) government and legal barriers
B) capital requirements
C) product differentiation
D) cost advantages independent of size
E) access to distribution channels
Question 2
According to the textbook, Dropbox, Facebook, and LinkedIn are examples of ________ firms.
A) lifestyle
B) salary-substitute
C) industry-standard
D) entrepreneurial
E) standard-of-living
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