Equity Investments Q200
200Which of the following most accurately results in increased competition within
an industry?
an industry?
| Barriers toEntry | Capacity | Concentration | |
| A. | Low | Unused | Low |
| B. | High | Unused | Low |
| C. | High | Near full capacity | High |
- Option : A
- Explanation : Low barriers to entry increase competition as they allow new entrants. Unused capacity results in intense price competition. Low concentration refers to a fragmented market which increases competition.
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