In an Industry, the Threat of Entry Is High When

question 68

Multiple Choice

In an industry, the threat of entry is high when

• A) capital requirements are low.
• B) expected returns are low.
• C) technological know-how is industry specific.
• D) switching costs are high.

---

Definitions:

Entrepreneurs

Individuals who take on the risk of starting and managing a business, often bringing innovation and new products or services to the market.

Economical

Pertains to the efficient use or management of resources to avoid waste and reduce expenses.

Alternative Energy

Sources of energy that are considered environmentally friendly and sustainable, alternative to conventional fossil fuels, such as solar, wind, and hydroelectric power.

Elasticity of Demand

Investigating the degree to which demand for a good is affected by its price dynamics.