Asked by Esmeralda Pimentel on May 27, 2024
Verified
The threat of new competitors will enter your market is _________ when entry is easy and _________ when there are significant barriers to entry.
A) high; high
B) high; low
C) low; high
D) low; low
Entry Barriers
Obstacles that prevent new competitors from easily entering an industry or area of business.
Competitors
Other businesses or individuals that offer similar products or services within the same market, competing for the same set of customers.
Market
An area or arena in which commercial dealings are conducted.
- Comprehend the elements that contribute to the risk of new entrants in a market, including entry barriers.
Verified Answer
ZK
Zybrea KnightJun 02, 2024
Final Answer :
B
Explanation :
The threat of new competitors entering a market is high when entry is easy due to few barriers, and low when there are significant barriers to entry, making it difficult for new competitors to enter the market.
Learning Objectives
- Comprehend the elements that contribute to the risk of new entrants in a market, including entry barriers.