The threat of new entrants is high when there are
A) high capital requirements.
B) low economies of scale.
C) high switching costs.
D) high differentiation among competitor products and services.

Question

Quizplus · Accepted Answer

High entry barriers discourage new competitors. Among the major sources of entry barriers are economies of scale, product differentiation, capital requirements, and switching costs.

The Threat of New Entrants Is High When There Are