In the Center of Porter's Five Forces Model Is Competition

question 25

Multiple Choice

In the center of Porter's Five Forces Model is competition. Which of the following represents the four outer boxes?

• A) Buyer power, systems power, threat of false entrants, and threat of substitute products or services
• B) Buyer power, systems power, threat of new entrants, and threat of substitute products or services
• C) Buyer power, supplier power, threat of new entrants, and threat of substitute products or services
• D) Business power, supplier power, threat of new entrants, and threat of powerful services

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Definitions:

Permanent Shortage

A sustained situation where the demand for a good or service persistently exceeds its supply, often due to fixed or limited quantities.

Price System

Mechanism that allocates resources, goods, and services based on supply and demand.

Price Ceilings

Price ceilings are regulatory measures that set a maximum price that can be charged for certain goods or services, with the goal of ensuring affordability.

Price Floors

Minimum prices set by the government for certain goods and services, aimed at preventing prices from dropping too low.