Which of the following factors best contributes to the U.S. automotive industry being characterized by high entry barriers?
A. New auto companies create electric cars powered by simpler motors and gearboxes.
B. New entrants in the automotive industry expect that incumbents will not or cannot retaliate.
C. Car manufacturers require large-scale production in order to be cost-competitive.
D. Few industrial products are as easy to build as cars powered by internal combustion engines.
Answer: car manufacturers require large-scale production in order to be cost-competitive