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Which of the Following Would Not Diminish the Risk of Entry

Question 38

Multiple Choice

Which of the following would not diminish the risk of entry of potential competitors for an established company within an industry?


A) Government prohibition of market entry in the company's industry.
B) Consumers prefer the established company's product.
C) Potential competitors cannot match the established company's lower cost structure.
D) The established company does not benefit from cost reductions due to mass production of standardized products.
E) Customers are locked into the established company's product due to the high amount of energy, time, and money it would take to switch to a new product.

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