1-42 Firms in industries that have low costs of entry tend to enjoy larger profits than firms in industries with high costs of entry.

Question

Quizplus · Accepted Answer

Firms in industries with high costs of entry tend to have a smaller number of competitors and barriers to entry. This can result in larger profits for these firms. Conversely, industries with low costs of entry tend to have more competition, which often leads to lower profits.

1-42 Firms in Industries That Have Low Costs of Entry