Which of the following barriers to entry occurs when a buyer's willingness to pay for a product increases as the number of other buyers for the industry's product increases?

Which of the following barriers to entry occurs when a buyer's willingness to pay for a product increases as the number of other buyers for the industry's product increases?



a.

Supply-side economies of scale

b.

Restrictive government policy

c.

Demand-side benefits of scale

d.

Customer switching costs



Answer: c


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