Potential Entrants Are More Likely to Be Deterred from Actually

Multiple Choice

Potential entrants are more likely to be deterred from actually entering an industry when

A) incumbent firms have previously been aggressive in defending their market positions against entry.
B) incumbent firms are complacent.
C) buyers are not particularly price sensitive and the industry already contains a dozen or more rivals.
D) the relative cost positions of incumbent firms are about the same, such that no one incumbent has a meaningful cost advantage.
E) buyer switching costs are moderately low because of strong product differentiation among incumbent firms.