Question

The likelihood of entry of new competitors is affected by ____ and ____.

a. barriers to entry, expected retaliation of current industry organizations
b. the power of existing suppliers, buyers
c. the profitability of the industry, the market share of its leading firm
d. the demand for the product, the profitability of the competitors

Answer 1

Barriers to entry, such as cost and limited availability of resources, can discourage or prevent potential competitors from entering a market. Expected retaliation of current industry organizations can also affect the likelihood of new competitors entering the market.

Step-by-step explanation:

Barriers to entry are the legal, technological, or market forces that discourage or prevent potential competitors from entering a market. The likelihood of entry of new competitors is affected by barriers to entry, such as the cost of renting retail space or limited availability of resources. Additionally, it is also affected by the expected retaliation of current industry organizations, as existing competitors may use their market power to prevent new entrants.