The Competitive Threat of Potential Entry Is NOT Strong When

question 49

Multiple Choice

The competitive threat of potential entry is NOT strong when _____________.

• A) there will be expected competitive retaliation
• B) there are sizable economies of scale
• C) there are strong brand preferences and customers are loyal
• D) All of these

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Definitions:

Annual Fixed Costs

The total fixed costs incurred by a business within a year, inclusive of expenses that do not fluctuate with production or sales volume.

Average Operating Assets

An efficiency metric calculated by averaging the value of a company's operational assets over a period, often used in rate of return calculations.

Direct Material Measures

Quantitative assessments used to determine the amount of direct materials required for production.

Financial Measures

Quantitative metrics used to assess a company's financial health and performance, such as income, cash flow, and profitability ratios.