Which One of the Following Increases the Competitive Pressures Associated

question 108

Multiple Choice

Which one of the following increases the competitive pressures associated with the threat of entry?

• A) When incumbent firms are likely to launch competitive initiatives to strongly contest the entry of newcomers
• B) When strong brand preference and a high degree of customer loyalty exists for the product offerings of incumbents
• C) When buyer demand for the product is growing fairly slowly
• D) When few outsiders have the expertise and financial resources and capabilities to hurdle whatever entry barriers exist
• E) When new entrants can expect to earn attractive profits

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion in a set of data points.

Risk-free Asset

An investment that is assumed to have no risk of financial loss, typically represented by government bonds.

Nominal Terms

Values or figures that have not been adjusted for inflation, representing current prices or values.

Treasury Bills

Short-term U.S. government debt obligations with maturities of one year or less, considered a safe and liquid investment.