The threat or reality of increased competition in an industry depends on the relative ease with which new firms can compete with established firms. In an industry with low barriers to entry, such as the __________ industry, competition will be fierce.
A) airline
B) health care
C) public accounting
D) fast-food

Question

Quizplus · Accepted Answer

The fast-food industry has relatively low barriers to entry compared to industries like airlines, health care, and public accounting, which require significant capital, regulatory compliance, and professional certifications. This makes it easier for new firms to enter the fast-food industry, leading to fierce competition.

The Threat or Reality of Increased Competition in an Industry