Asked by Filippa Hansebo on Jul 20, 2024
Verified
The threat of new competitors will enter your market is high when entry is _________ and low when there are _________ barriers to entry.
A) easy; few
B) easy; significant
C) hard; few
D) hard; significant
Entry Barriers
Factors or conditions in the marketplace that make it difficult for new competitors to enter a market or industry.
Competitors
Other businesses or individuals who offer similar goods or services, competing for the same customers or market share.
Market
A venue or environment where buyers and sellers interact to trade goods, services, or information, often setting prices through supply and demand.
- Understand the factors that contribute to the threat of new competitors entering a market, including barriers to entry.
Verified Answer
JJ
jiaen jiangJul 27, 2024
Final Answer :
B
Explanation :
The threat of new competitors entering a market is high when entry is easy and low when there are significant barriers to entry. This is because significant barriers can deter new competitors due to the high costs or difficulties associated with entering the market.
Learning Objectives
- Understand the factors that contribute to the threat of new competitors entering a market, including barriers to entry.