The Level of Entry Barriers Is Only Relevant to Potential

question 51

Multiple Choice

The level of entry barriers is only relevant to potential competitors because:

• A) Firms that are established in an industry have already overcome the barriers to entry.
• B) The existence of high entry barriers has little impact on overall industry profitability.
• C) Competitive markets are dynamic, so established firms expect that there will always be new entrants.
• D) The level of entry barriers is relevant to both existing and potential firms due to the competitive consequences for both.

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Definitions:

Racial Divisions

The separation of people into different categories based on race, often resulting in inequality, discrimination, and social conflict.

African Methodist

Pertains to the African Methodist Episcopal Church, a historically African American denomination that was founded in 1816 in Philadelphia, Pennsylvania.

Episcopal Church

A Christian denomination that is part of the worldwide Anglican Communion known for its middle way between Protestant and Catholic traditions.

Separate Institutions

Facilities or organizations that are segregated based on certain criteria, such as race, gender, or religion, often seen historically in the context of racial segregation.