Two forces that affect the competition are the ability of companies to ________ and ________ markets.
A) Enter, exit
B) Plan, enter
C) Plan, control
D) Control, exit

Question

Quizplus · Accepted Answer

The ability of companies to enter and exit markets directly affects the level of competition. If barriers to entry are low, more companies can enter the market, increasing competition. On the other hand, if barriers to exit are high, companies may be forced to stay in a market even if they are not profitable, decreasing competition. Therefore, the ability to enter and exit markets is a significant factor in determining the level of competition.

Two Forces That Affect the Competition Are the Ability of Companies