Final answer:
True, factors such as switching costs, access to distribution channels, economies of scale, a large number of competing firms, and slow industry growth can indeed create barriers to entry and affect the threat of new entrants in an industry.
Step-by-step explanation:
True, several factors can create barriers to entry in an industry and affect the threat of new entrants. These include switching costs, which are the expenses that a customer incurs as a result of changing from one supplier or product to another. Gaining access to distribution channels can be a significant barrier for new companies if existing competitors have strong ties and agreements with key distributors. Economies of scale benefit established firms as they can produce at a lower per-unit cost due to larger volume, which makes it difficult for small newcomers to compete. Furthermore, when an industry has a large number of competing firms, it may appear to be a tough market for a new entrant to succeed in. Additionally, slow industry growth can make it more challenging for new entrants, as they have to fight for market share rather than benefit from the natural growth of the industry.