Vidyalelo
Commerce · Q50

eCommerce

Graduate and Post Graduate · Commerce · question 50

Q50

If it is easy for competitors to enter the market, the threat of new entrants is considered:

A.
High
Answer
B.
Low
C.
More
D.
Less

Answer: Option A

Solution

Answer: Option A
Solution:
If it is easy for competitors to enter the market, the threat of new entrants is considered high. Threat of new entrants refers to the threat new competitors pose to existing competitors in an industry. Therefore, a profitable industry will attract more competitors looking to achieve profits.