The Likelihood of New Entrants Joining an Industry Is Low

question 4

Multiple Choice

The likelihood of new entrants joining an industry is low if existing competitors enjoy economies of scale because:

• A) new entrants struggle to match incumbents' prices.
• B) this discourages customers from buying a new entrant's offerings.
• C) new entrants struggle to gather enough cash to get started.
• D) each incumbent has a group of loyal customers that enjoy its unique features.
• E) new entrants struggle to get their offerings to customers.

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Definitions:

Sugary Substances

Items or materials that have a high sugar content, often associated with sweet taste and energy provision.

Delayed Reinforcers

Rewards that do not immediately follow a behavior but occur after some time, still affecting the likelihood of the behavior's recurrence.

Variable-Interval Schedules

A reinforcement schedule in experiments where a response is rewarded after an unpredictable amount of time has passed, used to study learning and behavior.

Primary Reinforcers

Innate reinforcing qualities like food, drink, and pleasure that fulfill basic biological needs and do not depend on learning to be effective.