New Entrants to an Industry Are More Likely When

question 18

Multiple Choice

New entrants to an industry are more likely when:

• A) it is difficult to gain access to distribution channels.
• B) economies of scale in the industry are high.
• C) product differentiation in the industry is low.
• D) capital requirements in the industry are high.

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Definitions:

Abilities

The inherent physical or mental capacities individuals possess, which can vary widely and impact performance in various tasks or occupations.

CEO

Chief Executive Officer, the highest-ranking individual in a company or organization, responsible for making major corporate decisions.

New Product

A good or service that has recently been introduced to the market and was not available to consumers before.

Over-optimism

The tendency to overestimate the likelihood of positive outcomes in various situations, often affecting judgment and decision-making.