If an industry has low entry and exit costs and the technology needed to start and maintain a business is commonly available, this creates:
A) a threat of new entrants.
B) a threat of substitute products and services.
C) an increased bargaining power of customers and suppliers.
D) a rivalry among existing competitors.

Question

Quizplus · Accepted Answer

Low entry and exit costs, as well as commonly available technology, make it easier for new companies to enter the market, increasing the threat of new entrants.

If an Industry Has Low Entry and Exit Costs and the Technology