Capital required to compete in an industry determines ________.
A)bargaining power of buyers
B)bargaining power of suppliers
C)threat of substitutes
D)threat of new entrants

Question

Quizplus · Accepted Answer

The capital required to compete in an industry is one of the factors determining the barriers to entry, which, in turn, affect the threat of new entrants. The higher the capital requirement, the more difficult it is for new competitors to enter the market, thus reducing the threat of new entrants. The capital requirement does not directly affect the bargaining power of buyers or suppliers or the threat of substitutes.

Capital Required to Compete in an Industry Determines ________