The need to invest large financial resources in order to compete creates
A) Increased supplier power
B) Increased buyer power
C) Increased jockeying for position
D) A barrier to entry

Question

Quizplus · Accepted Answer

Investing large financial resources in order to compete creates a barrier to entry for potential new competitors, as they may not have the resources or financial backing to enter the market and compete effectively. This decreases the threat of new entrants and strengthens the position of existing competitors.

The Need to Invest Large Financial Resources in Order to Compete