Which Factor Determines the Nature and Degree of Competition in an Industry,as

question 88

Multiple Choice

Which factor determines the nature and degree of competition in an industry,as identified by Michael Porter in his book Competitive Advantage?

• A)The interest of small businesses
• B)Bargaining power of competitors
• C)Threat of substitute products or services
• D)The macroeconomic level of the industry

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Definitions:

Identical Costs

Refers to costs that are the same across different products, services, or processes.

X-Inefficiency

A situation in which a firm fails to utilize its resources efficiently because of a lack of competitive pressure.

Average Total Costs

The total cost of production divided by the quantity produced, representing the per-unit cost of producing a good or service.

Economies Of Scale

Operational scale increases lead to cost efficiencies for businesses, prominently reflecting in reduced production costs per unit as the amount of output grows.