Which of the following options increases the strength of the market entrant force? A. A reduction in government or local regulations that govern an industry B. An increase in the government or local regulations that govern an industry C. High customer loyalty toward existing businesses D. An industry with highly competitive rivals with very low profit margins E. An increase in the cost of necessary equipment

Question

Maxim Miles

Business

31 December, 13:01

Which of the following options increases the strength of the market entrant force? A. A reduction in government or local regulations that govern an industry B. An increase in the government or local regulations that govern an industry C. High customer loyalty toward existing businesses D. An industry with highly competitive rivals with very low profit margins E. An increase in the cost of necessary equipment

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Answers (1)

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Lila Hinton · Answer 1

A reduction in government or local regulations that govern an industry.

Explanation:

When a government wishes to increase a market, reducing regulations that governs an industry is a good way to get new players in the industry.

On the other hand where there are numerous government policies guiding firms in an industry, companies will not enter the market.