Carroll Cereals Inc. is a major supplier to almost all grocery store chains. It has most of the valuable shelf space in the cereal aisle. Which of the following is true based on this information?

Question

Quizplus · Accepted Answer

Carroll Cereals Inc. has most of the valuable shelf space in the cereal aisle, indicating that it has established relationships with grocery store chains and likely has high brand recognition among consumers. This would create significant barriers to entry for new competitors trying to gain similar levels of market power, making the threat of new entrants low.