Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firms
A) stays the same.
B) increases.
C) decreases.
D) neutralizes.
E) fluctuates

Question

Quizplus · Accepted Answer

When new firms can easily enter a particular industry, it reduces the barriers to entry, which increases the number of competitors in the market, and, hence, the intensity of competitiveness among firms increases. Therefore, option B is correct, whereas options A, C, D, and E are incorrect.

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