Economics (AS & A Level) · Oct / Nov 2023 · Paper 31 · Question 7

Which combination of cost conditions is most likely to act as a barrier to entry to a new firm wanting to join an industry?

1. Ahigh fixed costs, high output minimum efficient scale, high level of sunk costs
2. Bhigh fixed costs, low output minimum efficient scale, high level of sunk costs
3. Clow fixed costs, high output minimum efficient scale, low level of sunk costs
4. Dlow fixed costs, low output minimum efficient scale, low level of sunk costs

As printed in the paper