If there are many competitors and the barriers to entry are low, the:
A) industry is attractive.
B) industry is unattractive.
C) customers have low bargaining power.
D) industry is mature.
E) industry is not mature.

Question

Quizplus · Accepted Answer

When there are many competitors and the barriers to entry are low, it means that there is little to prevent new entrants from joining the industry and competing with established firms. This can lead to price competition and lower profit margins for all firms in the industry. Therefore, such an industry is unattractive as it becomes difficult for firms to make profits and grow their business.

If There Are Many Competitors and the Barriers to Entry