New entrants to an industry are more likely when (i.e., entry barriers are low when…)

Question

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capital requirements in the industry are high.

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it is difficult to gain access to distribution channels.

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economies of scale in the industry are high.

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product differentiation in the industry is low.

1.	New entrants to an industry are more likely when (i.e., entry barriers are low when…)
A.	it is difficult to gain access to distribution channels.
B.	economies of scale in the industry are high.
C.	product differentiation in the industry is low.
D.	capital requirements in the industry are high.
Answer» D. capital requirements in the industry are high.

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