Which of the following is most likely an implication of new firms entering an industry?
A) The bargaining power of buyers will reduce.
B) The industry's overall profit potential and sales will increase.
C) The rivalry among existing competitors will reduce.
D) The incumbent firms will spend more to satisfy their existing customers.

Question

Quizplus · Accepted Answer

The threat of entry by additional competitors may force incumbent firms to spend more to satisfy their existing customers. Larger investments in value creation further reduce an industry's profit potential if prices cannot be raised.

Which of the Following Is Most Likely an Implication of New