Which of the Following Statements Regarding Substitutes Is Accurate

question 61

Multiple Choice

Which of the following statements regarding substitutes is accurate?

• A) In the extreme, substitutes can ultimately replace an industry's products or services.
• B) Substitutes place a floor on the prices firms in an industry can charge and on the profits firms in an industry can earn.
• C) Substitutes rarely impact the profitability that firms in an industry can earn.
• D) The importance of substitutes in reducing the profit potential in a wide variety of industries is decreasing.

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Definitions:

Circularity

A geometric tolerance that limits the amount of variation from a perfect circle, often applied to cylindrical parts to ensure they rotate or fit smoothly.

Tolerance

The permissible limit or limits of variation in a physical dimension, a measured value or physical property of a material, manufactured object, system, or service.

Datums

Reference points, lines, or surfaces on an object against which measurements are made, serving as a basis for the geometric control of the part.

Flatness Tolerance

Specifies the maximum allowable deviation of a surface from perfect flatness, ensuring proper function and assembly of machined parts.