Threat of entry are greater in all of the following situations, EXCEPT whenQuestion 5AnswerA.incumbent firms are willing to strongly contest the entry of newcomers with moves designed to make entry unprofitable.B.a large pool of potential entrants exists, some of which have the capabilities to overcome high entry barriers.C.entry barriers are relatively low and buyer demand for the product is growing rapidly, and newcomers can expect to earn attractive profits without inviting a strong reaction from incumbents.D.existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence.E.customers have low brand preferences and low degrees of loyalty to seller

Potential entrants are more likely to be deterred from actually entering an industry when Question 2AnswerA.incumbent firms are willing and able to be aggressive in defending their market positions against entry.B.incumbent firms are complacent.C.buyers are not particularly price-sensitive and the industry already contains a dozen or more rivals.D.the relative cost positions of incumbent firms are about the same, such that no one incumbent has a meaningful cost advantage.E.buyer switching costs are moderately low because of strong product differentiation among incumbent firms.

Consider the market structure of perfect competition. What does the lack of entry barriers indicate?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aAll firms will end up producing a unique and different productbThere are no significant obstacles preventing firms from entering and leaving the industrycNo new firms can enter an already-established industrydFirms can enter the industry easily but cannot exit the industry easily

Which of the following conditions generally raise the barriers to entering an industry?Multiple Choicelow levels of brand loyalty on the part of customers and the presence of more than 20 rivals in the industryrapid market growth, low buyer switching costs, and weak brand preferences and customer loyaltyproduct offerings that are pretty much standardized from rival to rivalhigh capital requirements, difficulties in building a network of distributors-retailers and securing adequate space on retailers’ shelves, and the likelihood that industry incumbents will strongly contest the efforts of new entrants to gain a market footholdThe industry is not characterized by scale economies and/or sizable learning or experience curve effects, and few firms in the industry hold key patents and/or possess significant proprietary technology not readily available to a newcomer.

Multiple Choice QuestionWhat is the term for factors that prohibit firms from entering an industry?Multiple choice question.Barriers to businessReduction of entryBarriers to entryLack of entry

State two examples of barriers to entry to a market. (2 marks