According to Michael Porter, There Are Five Determinants of Competition

question 19

Multiple Choice

According to Michael Porter, there are five determinants of competition.An example of _____ is when a buyer purchases a large fraction of an industry's output and can demand price concessions.

• A)threat of entry
• B)rivalry between existing competitors
• C)pressure from substitute products
• D)bargaining power of buyers

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Definitions:

Output Supply

The total amount of a product or service that is available for purchase at any given price level in a given market.

Long-Run Cost Function

A concept that describes how the total production costs of a firm change based on output levels, considering all inputs as variable in the long term.

Output Supply

The total amount of a good or service that producers are willing and able to sell at a given price over a certain period of time.

Price

The financial expenditure needed to acquire a good or service.