If There Are Many Competitors and the Barriers to Entry

question 14

Multiple Choice

If there are many competitors and the barriers to entry are low, the:

• A) industry is attractive.
• B) industry is unattractive.
• C) customers have low bargaining power.
• D) industry is mature.
• E) industry is not mature.

---

Definitions:

Safety Inventory

Additional stock that is maintained to act as a safeguard against supply and demand uncertainties, ensuring product availability.

Holding Cost

The expenses incurred to store inventory, including warehousing, insurance, and depreciation, until the goods are sold or used.

Vidalia Onions

A sweet variety of onion grown exclusively in a specified region of Georgia, known for its unique taste.

Transit Time

The duration it takes for goods or materials to be transported from one point to another.