Deelited Inc. is a company that manufactures soft toys for children. The company operates on a very large scale, and this has enabled it to price its toys at competitive rates while still retaining good product quality. Since it is extremely difficult for a new entrant to sell toys at such low prices, few competitors have emerged for Deelited in the past five years. In this case, the low threat that Deelighted Inc. faces from new entrants can be attributed to
a. demand-side benefits of scale.
b. incumbency advantages.
c. supply-side economies of scale.
d. high capital requirements of the industry.
Answer: C