In which of the following ways can entry erode incumbents' profits?
A)Entrants divide market demand among fewer sellers
B)Entrants decrease market concentration
C)Entrants usually grow the market for all parties
D)Entrants increase market concentration
E)Entrants reduce internal rivalry

Question

Quizplus · Accepted Answer

Entrants decrease market concentration, leading to increased competition and potentially lower prices, which can erode incumbents' profits.

In Which of the Following Ways Can Entry Erode Incumbents