Porter's Five Forces Framework

question 67

Multiple Choice

Porter's five forces framework:

• A)​Identifies relevant variables but fails to ask the needed questions.
• B)​Identifies only questions to ask.
• C) ​Identifies both relevant variables and questions to ask.
• D) ​Eliminates the need for other frameworks to add insight about firm performance.

---

Definitions:

Revenue Curves

Graphical representations that show how a firm's revenue changes in response to changes in price, holding other factors constant.

Total Revenue

The overall amount of money earned by a company from the sale of its goods or services, calculated as the price per unit times the number of units sold.

Price Charged

Price charged refers to the amount of money levied on a product or service by a seller, which the buyer must pay to complete the transaction.

Total Revenue Curve

A graphical representation showing how total revenue changes as the quantity sold of a good or service varies, holding all else constant.