Question 7 2 pt The threat of new entrants is affected by an

Question 7 2 pt The threat of new entrants is affected by and O the demand for the product; the profitability of the competitors O barriers to entry; expected retaliation of current industry organizations the profitability of the industry, the market share of its leading firm the power of existing suppliers; buyers

Solution

Correct option is (3).

The higher (lower) the profitability of industry, the stronger (weaker) the threat of new entry, and the higher (lower) the market share of the leading (dominant) firm, the weaker (stronger) the threat of new entry.