Which of the Following Statements Regarding the Impact of Product

question 22

Multiple Choice

Which of the following statements regarding the impact of product differentiation on the threat of new entry is accurate?

• A) Product differentiation helps reduce the threat of new entry by forcing potential new entrants to absorb costs associated with overcoming incumbent firms' product-differentiation advantages.
• B) Product differentiation increases the threat of new entry by allowing potential new entrants to avoid costs associated with overcoming incumbent firms' product-differentiation advantages.
• C) Product differentiation has no impact on the threat of new entry.
• D) It is not possible to determine the impact of product differentiation on the threat of new entry.

---

Definitions:

Educational Purposes

Intentions or activities aimed at learning, teaching, or academic improvement.

Reimbursed

Compensated or repaid for expenses that have been incurred.

Trial Period

A set duration during which a product, service, or employee is tested or evaluated before a final decision or purchase is made.

Staff Development

Organizational activities aimed at improving the knowledge, skills, and competencies of staff members to enhance their performance and personal growth.