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Which of the following industry factors does not affect the threat of new firms entering the industry?

(A) Legal barriers
(B) Price sensitivity
(C) First mover advantage
(D) Access to channels to distribution
(E) None of the above

User Liman
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1 Answer

4 votes

Final answer:

Price sensitivity does not affect the threat of new firms entering the industry.

Step-by-step explanation:

The industry factor that does not affect the threat of new firms entering the industry is Price sensitivity. Price sensitivity refers to the degree to which customers are responsive to changes in prices. This factor does not directly affect the barriers to entry or the ability for new firms to enter the market. Legal barriers, first mover advantage, and access to channels of distribution are all examples of industry factors that can impact the threat of new firms entering the industry.

User SpechtacularDave
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