Asked by
Gosaye Gomole
on Dec 12, 2024
Verified
Which of the following is true?
A) Competitive forces are stronger in markets with high entry barriers than in those where entry barriers are low.
B) Quality competition is an important element of the competitive process.
C) If the production of a good is highly profitable, the development of substitute products will be discouraged.
D) High barriers to entry are only the result of natural factors not artificial factors like government regulations.
Entry Barriers
Factors that prevent or hinder companies from entering a particular market, including high start-up costs, stringent regulations, and established competitors.
Competitive Forces
Elements in the external environment that influence the competitiveness of a company, including rivalry among existing competitors, threat of new entrants, threat of substitute products, bargaining power of buyers, and bargaining power of suppliers.
- Acquire knowledge on the significance of entry barriers and competition in upholding monopolies.
Verified Answer
JC
Learning Objectives
- Acquire knowledge on the significance of entry barriers and competition in upholding monopolies.