As a barrier to new entry, absolute cost advantages can be based on:
a. continuous advertising of brand and company names, and product innovation achieved through research and development.
b. high product quality, service-oriented innovations, and good after-sales service.
c. the unique ability of established companies to spread fixed costs over a large volume.
d. cost reductions that arise from the mass production of standardized output.
e. superior production operations and processes due to accumulated experience, patents, or trade secrets.