Which of the Following Statements Correctly Describes Potential Competitors in an Industry

question 81

Multiple Choice

Which of the following statements correctly describes potential competitors in an industry?

• A) They threaten the profitability of established companies.
• B) They are usually encouraged by established companies.
• C) They find it easier to enter an industry when the entry barriers are high.
• D) They find it easier to enter an industry when established companies have economies of scale.
• E) They usually have an absolute cost advantage over established companies.

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Definitions:

Compensating Wage Differential

A financial adjustment to salaries that aims to balance out less desirable aspects of a job, such as hazardous conditions or irregular hours.

Supply Of Labor

The supply of labor refers to the total hours that workers wish to work at a given real wage rate.

Labor Economists

Specialists who study the dynamics of the labor market, including employment, wages, and labor productivity.

Natural Ability

The inherent skills or talents that an individual possesses, often influencing their ease of learning or performing tasks.