Podcast
Questions and Answers
What does potential new entrants refer to?
What does potential new entrants refer to?
- Companies that have the ability to penetrate a particular industry (correct)
- Companies with no government regulations
- Companies with low capital requirements
- Companies that have already established a presence in the industry
Which of the following is NOT a factor indicating potential new entrants would decline to join an industry?
Which of the following is NOT a factor indicating potential new entrants would decline to join an industry?
- Low capital requirements (correct)
- Strict government policy
- High switching cost
- Difficulty in accessing distribution channels
What characterizes the intensity of rivalry among existing firms?
What characterizes the intensity of rivalry among existing firms?
- Low fixed costs
- High rate of industry growth (correct)
- Decreased capacity
- Low diversity of rivals
In the context of potential new entrants, what does 'economies of scale' refer to?
In the context of potential new entrants, what does 'economies of scale' refer to?
Which factor would NOT contribute to the threat posed by potential new entrants?
Which factor would NOT contribute to the threat posed by potential new entrants?
How can a buyer's purchasing behavior impact the seller?
How can a buyer's purchasing behavior impact the seller?
Which factor would NOT lead to increased rivalry among existing firms?
Which factor would NOT lead to increased rivalry among existing firms?
What does a low amount of fixed costs indicate about the intensity of rivalry among existing firms?
What does a low amount of fixed costs indicate about the intensity of rivalry among existing firms?
Which factor would NOT be considered a threat from potential new entrants?
Which factor would NOT be considered a threat from potential new entrants?
What do high switching costs indicate in the context of potential new entrants?
What do high switching costs indicate in the context of potential new entrants?
