If Many Factors Prevent New Companies from Entering an Industry

question 41

Multiple Choice

If many factors prevent new companies from entering an industry, the

• A)threat of new entrants is more serious.
• B)threat of competitive rivalry is high.
• C)threat to established firms is less serious.
• D)new companies can easily compete with the established ones.
• E)industry is said to have just a few barriers to entry.

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Definitions:

Profit-Maximizing

A strategy or approach taken by firms to adjust their production and pricing to achieve the highest possible profit.

Output

The amount of products or services generated by a business, sector, or nation during a specific period.

Auto Repairs

Services provided to fix or maintain vehicles to ensure they are in optimal working condition.

Gasoline

A petroleum-derived liquid mixture consisting primarily of hydrocarbons, used primarily as fuel in internal combustion engines.