New entrants are more likely to join an industry if:
A) differentiation among existing competitors is high.
B) access to distribution channels is limited.
C) existing competitors lack economies of scale.
D) capital requirements to enter the industry are high.
E) expected retaliation from existing competitors is high.

Question

Quizplus · Accepted Answer

New entrants are more likely to join an industry if existing competitors lack economies of scale, as this means they can compete more effectively on cost without needing to match the scale of existing players.

New Entrants Are More Likely to Join an Industry If