Firms That Have Either Recently Begun Operations in an Industry

question 10

Multiple Choice

Firms that have either recently begun operations in an industry or that threaten to begin operations in an industry soon are considered to be ________ in the five forces framework.

• A) barriers to entry
• B) new competitors
• C) suppliers
• D) buyers

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Definitions:

Replace Workers

The practice of substituting current employees with new hires or automation technology.

Surplus Extraction

The process or strategy of obtaining excess resources, typically beyond the equilibrium or expected level, from a market or economy.

Buyer's Valuations

The perceived value or worth that a buyer assigns to a product or service, determining how much they are willing to pay.

Number of Customers

The total count of individuals or entities that purchase goods or services from a business within a specific timeframe.