A New Company Named Far Reach Inc

Multiple Choice

A new company named Far Reach Inc. entered the radio retail business, which is a fairly consolidated industry. In response, two large incumbent radio retailers, Smooth Waves and Clear Signal, lowered the price of their radios. Also, they spent more money to improve their radios and on additional marketing. By doing this, Smooth Waves and Clear Signal

A) decreased industry exit barriers.
B) increased industry exit barriers.
C) decreased industry profit potential.
D) increased industry profit potential.