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:

Cilia

Short, hairlike projections from the plasma membrane, occurring usually in larger numbers.

Zygospore

Thick-walled resting cell formed during sexual reproduction of zygospore fungi.

Ascocarp

Reproductive structure of the sac fungi (phylum Ascomycota).

Basidium

Clublike structure in which nuclear fusion, meiosis, and basidiospore production occur during sexual reproduction of club fungi.