Which If the Following Attributes Makes Suppliers a Stronger Threat

question 86

Multiple Choice

Which if the following attributes makes suppliers a stronger threat?

• A) The supplier's industry is dominated by a small number of firms.
• B) When the product or service provided by suppliers is not highly differentiated
• C) When suppliers are threatened by substitutes
• D) When suppliers are not able to enter into and begin competing in a firm's industry

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Definitions:

Elasticity of Supply

A measure of how much the quantity supplied of a good or service changes in response to a change in price.

Factor of Production

Inputs used in the production of goods or services, typically categorized into land, labor, capital, and entrepreneurship.

Cross Elasticity of Demand

The ratio of the percentage change in quantity demanded of one good to the percentage change in the price of some other good. A positive coefficient indicates the two products are substitute goods; a negative coefficient indicates they are complementary goods.

Inferior Goods

Goods for which demand decreases as the income of the consumer increases, as they are typically replaced with more expensive alternatives.