问题如下:
What is the relationship between ease of entry and exit and pricing power?
选项:
A.Greater ease of entry and exit reduces power of pricing.
B.Greater ease of entry and exit rises power of pricing.
C.Pricing power is reduced by greater ease of entry and is increased by greater ease of exit.
解释:
C is correct.
In industry with low or no-existent barriers to entry, companies have low pricing power because their marker share can be taken away by new competitors. Price wars and excess capacity are likely to come up because high costs of exiting. Pricing power is increased by greater ease of exit.
老师,可是这个题目很奇怪,退出壁垒低怎么能够增加定价能力了