Which of the following is not a factor that could limit the entry of firms into a market?

A. Social pressures.

B. The fixed costs of building plants.

C. A law requiring six months notice to employees before laying them off.

D. Poorly functioning capital markets.

The correct answer to the following question is option B) the fixed cost of building plants.

Explanation:

From all of the given options, only (B) fixed cost involved in building plants, is the one which would not restrict the entry of firms in the market, because fixed cost like this is normal for any business, every firm which is entering in to a new market knows that they have to incurred cost like this, because to start producing goods they need plants or other assets.

While factor like poorly functioning capital market, is a big indicator for the firm to not to enter in to that market, as earning profits in the market given its current situation would be very difficult. Also if in a market, there is a law that 6 months notice has to be given to employees before firing them, the firm wouldn't want to enter that market because they wouldn't want an inefficient employee, who cannot contribute to company's progress or achieving targets.