The strongest barriers to entry effectively block all
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Question

The strongest barriers to entry effectively block all 
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BlackTom AI · Accepted Answer

The prompt asks us to analyze which phrase completes the sentence about barriers to entry in market structure.
Option 1: 'economies of scale' - This is a classic barrier to entry because large-scale production lowers average costs, making it harder for small entrants to compete. However, it is not the phrase given in the provided answer field as the strongest barrier in this question.
Option 2: 'potential competition' - This term refers to the threat that new entrants might pose to incumbent firms. When barriers are strong, potential entrants are deterred or unable to enter, effectively blocking competition from entering the market. Hence, the strongest barriers to entry are often described as blocking potential competition, which aligns with the intended concept here.
Option 3: 'marketing efforts' - While marketing can influence success for entrants, it is not typically framed as a primary barrier to entry that blocks new firms from entering; instead, it is a tool that entrants use to compete once they enter.
Option 4: 'monopolistic situations' - This describes a market outcome where a single firm dominates, but it is more about market structure after entry or conduct rather than a barrier that prevents entry in the first place. It does not fill in the blank in the same way as the concept of blocking potential entrants.
In summary, each option reflects a different aspect of competition and entry dynamics, but only 'potential competition' captures the idea of barriers that prevent new firms from entering by eliminating or threatening entry opportunities. The other options describe factors or outcomes that are related to competition but do not directly embody the strongest entry barriers as the question frames them.

The strongest barriers to entry effectively block all Blank ______.

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