The Likelihood of New Entrants Joining an Industry Is Low

Multiple Choice

The likelihood of new entrants joining an industry is low if capital requirements to enter the industry are high because:

A) new entrants struggle to match incumbents' prices.
B) this discourages customers from buying a new entrant's offerings.
C) new entrants struggle to gather enough cash to get started.
D) each incumbent has a group of loyal customers that enjoy its unique features.
E) new entrants struggle to get their offerings to customers.