If many factors prevent new companies from entering an industry, the
A)threat of new entrants is more serious.
B)threat of competitive rivalry is high.
C)threat to established firms is less serious.
D)new companies can easily compete with the established ones.
E)industry is said to have just a few barriers to entry.

Question

Quizplus · Accepted Answer

If many factors prevent new companies from entering an industry, such as high barriers to entry, the threat to established firms is less serious as there will be fewer new competitors to challenge their market position. Therefore, the existing companies in the industry can continue to operate without significant threat of competition.

If Many Factors Prevent New Companies from Entering an Industry