Which One of the Following Does Not Intensify the Competitive

question 118

Multiple Choice

Which one of the following does not intensify the competitive pressures associated with the threat of entry?

• A) When incumbent firms are unable or unwilling to launch competitive initiatives to strongly contest the entry of newcomers
• B) When industry members are struggling to earn good profits
• C) When entry barriers are relatively low and buyer demand for the product is growing fairly rapidly
• D) When existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence
• E) When newcomers can expect to earn attractive profits and a number of outsiders have the expertise and resources to hurdle whatever entry barriers exist

---

Definitions:

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service versus what they actually receive, indicating the benefit to producers.

Market Price

The current price at which a good or service can be bought or sold in the market.

Costs Of Production

The expenses incurred in manufacturing a product or providing a service, which may include raw materials, labor, overhead, and any other costs directly tied to the production process.

Basketball

A team sport in which two teams, typically of five players each, opposing one another on a rectangular court, compete with the primary objective of shooting a basketball through the defender's hoop.