Question

In the aircraft manufacturing industry, at least for large commercial jets, Boeing and Airbus are the only competitors. There is not a significant threat of entry because:_______.
A) there is expected to be a huge return on investment within this industry
B) entering the aircraft manufacturing industry means violating government policies
C) there is no credible threat of retaliation from the incumbents.
D) entering the aircraft manufacturing industry requires huge capital investments

Answer 1

Answer:

D) entering the aircraft manufacturing industry requires huge capital investments

Explanation:

According to the given situation, Boeing and Airbus are the only rivals in the aircraft production business, at least for the big commercial jets.

There is no big entry hazard, as it requires the big amount of capital for entering into the aircraft manufacturing industry.

Therefore from the above explanation, it is clear that the correct answer is d.