Understanding the External Environment of a Firm Requires One Ultimately

question 29

Multiple Choice

Understanding the external environment of a firm requires one ultimately to identify:

• A)The opportunities to make profit in the industry
• B)The five forces identified by Porter's model
• C)The barriers to entry and to exit in that industry
• D)The expected level of profit in the mid.term for that industry

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Definitions:

Unsold Donuts

The quantity of donuts that remain unsold at the end of a selling period, signifying excess supply or lack of demand.

Marginal Benefit

The added value or usefulness experienced when one more unit of a good or service is consumed.

Marginal Cost

Marginal cost is the increase in total cost that arises from producing one additional unit of a product or service.

Study Abroad

An educational program that allows students to live in a foreign country and attend a foreign educational institution for a certain period.