Which One of the Following Increases the Competitive Pressures Associated

question 4

Multiple Choice

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

• A)Incumbent firms are likely to launch competitive initiatives to strongly contest the entry of newcomers.
• B)Buyers have a high degree of loyalty to the brands and product offerings of existing industry members.
• C)Buyer demand for the product is growing fairly slowly.
• D)Few outsiders have the expertise and resources to hurdle past whatever entry barriers exist.
• E)Newcomers can expect to earn attractive profits.

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Definitions:

Income

The amount of money received by an individual or entity in exchange for labor or services, through investments, or from any other sources.

Nuts

Typically refers to dry, edible seeds or fruits with a high fat content, but in economics or general usage, it might not have a specialized meaning beyond its common understanding.

Berries

Small, pulpy, and often edible fruits, typically containing multiple seeds.

Utility Function

A mathematical representation of how consumer preferences over a set of goods and services translate into levels of satisfaction or utility.