A Mining Company Develops a New Processing Technique Using Only

question 37

Multiple Choice

A mining company develops a new processing technique using only light and patents the process. This situation is characterized by ________.

• A) low threat of substitutions
• B) high bargaining power of customers
• C) high threat of new entrants
• D) low bargaining power of suppliers
• E) low threat of new entrants

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Definitions:

Demand Curve

An illustrative chart that demonstrates the link between a product's price and the amount of it consumers want to buy.

Maximum Price

A price cap, often set by regulators, beyond which a product or service cannot be sold to prevent exploitation or ensure affordability.

Additional Unit

An extra item or quantity added to an existing lot or production level.

Law of Demand

An economic principle stating that as the price of a product decreases, consumer demand for the product will increase, and vice versa.