A Company Raises Its Prices and Customers Have No Choice

question 57

Multiple Choice

A company raises its prices and customers have no choice but to pay because there are no other substitute products.Which of Michael Porter's competitive forces is this an example of?

• A) threat of new competitors
• B) bargaining power of buyers
• C) bargaining power of suppliers
• D) threat of substitute products

Understand the concept of generational differences and their impact on organizational culture and change.

Identify strategies supervisors can use to build a power base and navigate organizational politics.

Comprehend how power dynamics influence conflict resolution and change management.

Explain the role of reward and punitive measures in influencing employee behavior and facilitating change.

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Definitions:

Incremental Cost

The additional cost associated with producing one more unit of a product or service.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and factory management salaries.

Process Further

The decision-making process regarding additional investments in products or processes beyond the initial production stage to increase value.

Incremental Revenue

The additional revenue generated from a particular action or decision, compared to a scenario where the action was not taken.