Question

Mcgraw hillThe more difficult it is to enter the task environment:

A) The more competitors an organization faces.
B) The harder it is to obtain customers.
C) The easier it is to keep prices high.
D) The less expensive it is to enter the industry.
E) The lower is the barrier to entry.

Answer 1

Answer: C) The easier it is to keep prices high.

Step-by-step explanation:

The task environment refers to the set of sectors that includes global suppliers, distributors, customers, and competitors.

In a profitable industry, if new companies attempt to enter the task environment, the output will expand, making prices fall, and profits decline. Decreasing the threat of entry by developing policies that build barriers to entry allows established businesses to keep prices high.