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According to Porter's Five Forces Model, Which of the Following

question 33

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According to Porter's five forces model, which of the following would be most affected by the threat of substitutes?


Definitions:

Cost Structure

The composition and proportion of fixed and variable costs that a business incurs, influencing its profitability and pricing strategies.

Variable Costs

Expenses that adjust in proportion to the amount of production or the intensity of business operations.

Fixed Costs

Expenses that remain constant regardless of the amount of production or sales, including rent, salaries, and insurance.

Finished Goods Inventory

The inventory of finished goods available for sale but have not been bought by consumers yet.

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