Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firms tends to
A) stay the same.
B) increase.
C) decrease.
D) neutralize.
E) fluctuate.

Question

Quizplus · Accepted Answer

When new firms are able to easily enter an industry, this typically means the barrier to entry is low. This results in more competition which tends to increase the intensity of competitiveness among firms. Thus, option B is the best choice.

Whenever New Firms Can Easily Enter a Particular Industry, the Intensity