Why are efforts to enter such industries as commercial aircraft or household laundry equipment so rare?

Question

BlackTom AI · Accepted Answer

Consider the question about why entry into industries like commercial aircraft or household laundry equipment is so rare.
Option 1 states that these industries are allowed to have pure monopolies by the government. This is not accurate as a general rule; while some markets may be heavily concentrated or have dominant players, government-macroscopic pure monopolies are not the standard explanation for high barriers to entry in these sectors.
Option 2 claims that the barrier is due to heavy regulation and licensing. Regulation can be a factor, but the statement overstates it as the sole or primary reason; many regulated industries have paths to entry, and the core economic barrier typically goes beyond regulatory hurdles.
Option 3 asserts that the industries require economies of scale to be profitable, which is expensive and risky to establish. This aligns with the reality that both commercial aircraft and household laundry equipment demand huge upfront capital, specialized knowledge, long development cycles, and output-scale benefits that small entrants cannot easily achieve, making scale-driven barriers the central explanation.
Option 4 suggests the government caps the number of independent companies. In practice, there isn’t a fixed government quota on the number of firms; the bottleneck is more about the cost, complexity, and risk associated with achieving sufficient scale and technical capability rather than a hard cap on firms.
In summary, while regulation and market structure can influence entry, the dominant and most precise reason these industries are hard to enter is the need for substantial economies of scale to reach profitability, which entails high fixed costs, long payback periods, and significant technical hurdles.

Why are efforts to enter such industries as commercial aircraft or household laundry equipment so rare?单项选择题

类似问题

When firms grow larger, they sometimes acquire more market power, meaning that they have greater ability to negotiate lower prices with their suppliers. This ability to negotiate lower prices with their suppliers leads to

Question at position 9 When there are economies of scale,A) per-unit costs increase as output increasesB) per-unit costs decrease as output increasesC) per-unit costs are constant as output increasesD) output does not affect per-unit costsClear my selection

The demand curve intersects the natural monopolist's long-run average total cost curve at a point where long-run average total costs are still falling, due to Blank ______.

A natural monopoly's economies of scale refers to one firm's ability to achieve the lowest long-run average total cost, also known as

When a firm with low marginal costs and fixed development costs adds more customers, the average total cost of output increases.

Economies of scale refer to Blank ______ average total costs with added firm size.

Modern technology can be a cause of extensive Blank ______.

How do economies of scale affect long-run average total costs for a firm?

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单