Final answer:
The measure of how easy or difficult it is for new companies to begin operations in an industry due to barriers to entry is called the threat of new entrants. The correct option for this question is c. 'threat of new entrants'.
Step-by-step explanation:
The measure of the degree to which barriers to entry make it easy or difficult for new companies to start in an industry is known as the threat of new entrants. Barriers to entry can be legal, technological, or market forces that discourage or prevent potential competitors from entering a market. Such barriers may include anything from the significant initial capital investment required, to legal restrictions such as patents or monopoly rights over essential resources.
Barriers to entry play a crucial role in determining how much market power each firm in the industry possesses, and how similar each firm's product is to products of other firms in the industry. When barriers are high, entering the market becomes more difficult, thus allowing existing firms to maintain a degree of control over prices and market share. High barriers to entry can lead to a monopoly if a single firm is able to dominate the market.
An example of a strong barrier to entry would be control over a limited resource, like radio frequencies, where an entrepreneur purchasing all available rights effectively blocks new competitors from entering the market. Conversely, if a market has low barriers to entry, new competitors can easily join, leading to more competition and typically lower prices for consumers.
In conclusion, to answer the student's question, the correct option is c. threat of new entrants.