Which of the Following Is NOT Descriptive of "Threat of Substitute

question 52

Multiple Choice

Which of the following is NOT descriptive of "threat of substitute products or services?"

• A)Substitute products appear to be different, but satisfy the same need as another product.
• B)If the cost of switching is low, substitutes may have a strong effect on an industry.
• C)Identifying substitutes is relatively easy since they look similar.
• D)Possible substitute products or services may not appear to be easily substitutable.
• E)Substitutes limit the potential returns of an industry.

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Definitions:

Widespread Diffusion

The broad and extensive spread of something, such as a technological innovation or cultural idea, across a wide area or among a large number of people.

Oligopolists

Firms or entities that are part of an oligopoly, a market dominated by a small number of large suppliers, leading to limited competition.

R&D

Research and Development; activities in connection with corporate or governmental innovation, encompassing the work towards the development of new products or procedures.

Economic Profit

The financial surplus a company has after deducting all types of costs, including visible and hidden, from its gross income.