Substitute Products

question 62

Multiple Choice

Substitute products

• A)reduce the attractiveness and profitability of an industry.
• B)represent those items manufactured by direct rivals within an industry.
• C)are usually cheaper than the products they can replace.
• D)are always a serious threat to rivals in an industry.

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Definitions:

Government Backing

The support or endorsement provided by a government to an entity, which can include financial guarantees, subsidies, or policies beneficial to the entity.

Overvalued

When the market price of an asset exceeds its intrinsic value.

Liquefied Petroleum Gas

A fuel gas made of hydrocarbons like propane and butane, used in heating appliances, cooking equipment, and vehicles.

Currency Exchange

The process by which entities swap one nation’s currency for that of another.