Potential Entrants Are More Likely to Be Deterred from Actually

question 109

Multiple Choice

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

• A) incumbent firms have previously been 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:

Puberty

The period during which adolescents reach sexual maturity and become capable of reproduction.

Sexual Maturity

The stage of development at which an individual becomes capable of reproductive activity.

American Adolescents

Youths living in the United States undergoing the transition from childhood to adulthood, typically involving diverse cultural, social, and psychological changes.

Substance Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs.