Potential Entrants Are More Likely to Be Deterred from Actually

question 92

Multiple Choice

Potential entrants are more likely to be deterred from actually entering an industry when

• A)incumbent firms are willing and able to be aggressive in defending their market positions against entry.
• B)incumbent firms are complacent.
• C)buyers are not particularly price-sensitive and the industry already contains a dozen or more rivals.
• D)the relative cost positions of incumbent firms are about the same, such that no one incumbent has a meaningful cost advantage.
• E)buyer switching costs are moderately low because of strong product differentiation among incumbent firms.

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Definitions:

Empirical Research

The process of collecting and analyzing data through observation and experimentation to gain knowledge or prove theories.

Behavioural Approach

A psychological perspective focusing on observable behaviors and how they're learned through interaction with the environment.

Cognitive Approach

A psychological perspective that emphasizes the importance of internal mental processes in understanding human behavior.

Person-Centred Theory

A psychological approach that emphasizes the importance of the individual's self-concept and the inherent capacity for personal growth and self-healing.