Which of the Following Is Not a Force in the Porter's

question 81

Multiple Choice

Which of the following is not a force in the Porter's five forces model?

• A) Threat of substitute products
• B) Bargaining power of suppliers
• C) Bargaining power of customers
• D) Threat of new entries
• E) Threat of government regulations

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Definitions:

MPC

Marginal Propensity to Consume - the proportion of any additional income that is spent on consumption rather than being saved.

Consumption

The act of using goods and services for personal use, often considered in economic terms as an indicator of economic health.

Disposable Income

Fiscal space for households' spending and saving maneuvers after settling income taxes.

MPS

Marginal Propensity to Save, which measures the fraction of additional income that is saved rather than spent on consumption.