The Threat from Substitutes Is High When

question 62

Multiple Choice

The threat from substitutes is high when:

• A) switching costs are high.
• B) the substitute product's price is lower than the industry product's price.
• C) the quality of the substitute product is lower than the quality of the industry's product.
• D) the substitute product stimulates new process innovations within the industry.

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Definitions:

Heroin

An opioid drug made from morphine, a natural substance taken from the seed pod of the various opium poppy plants.

THC

Tetrahydrocannabinol, the principal psychoactive constituent of cannabis, responsible for its mind-altering effects.

Active Ingredient

The component of a drug or substance that is biologically active and responsible for its effects on the body.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes, known for its effects on mood and perception.