Respuesta :
Answer:
Explanation:
True. According to mill, the capital intensiveness of a business could serve as a barrier to entry. A barrier entry is a type of obstacle that blocks or impedes the ability of a company (competitor) to enter an industry.
What are the usual barrier entry?
The typical entry barriers are economies of size that requires a huge volume of production and sales to meet the meet the level of cost per unit of production.
The second barriers to entry is capital intensive where huge capital investment per unit of output in facilities attempts to limit the entry to industry.
Huge switching cost is another category of entry barrier, where the tendency for purchasers of an industry’s items to be reticent about shifting to a new supplier tends to limit entry.
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