A Popular Food Company, Crunchez Corp

question 10

Multiple Choice

A popular food company, Crunchez Corp., is finding it difficult to retain its buyers as another food company, MidnightSnax Inc., has started to provide the same product with the same taste for a lesser price. Which of the following is a threat to Crunchez Corp.?

• A)Cost push inflation
• B)Supplier power
• C)Switching cost
• D)Unused production capacity

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Definitions:

Environmental Pollution

The contamination of the natural environment by harmful substances or energies.

Marginal Land

Land that yields minimal profit from agricultural or another use, and its cultivation is often not considered worth the effort under normal circumstances.

Import Quotas

Limits set by governments on the quantity of a specific good that can be imported into a country within a given timeframe.

Special-Interest Effect

Any political outcome in which a small group ("special interest") gains substantially at the expense of a much larger number of persons who each individually suffers a small loss.