The Five Competitive Forces Model Expands the Arena of Competitive

question 63

True/False

The five competitive forces model expands the arena of competitive analysis beyond direct competitors (i.e., rivals) to include buyers and suppliers who may also be a source of competition.

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Definitions:

Land Rent

The payment made for the use of land or real estate.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or input.

Usury Laws

Legislation enacted to place a limit on the interest rate that can be charged on loans, intended to protect borrowers from excessively high rates.

Below-Market Interest Rate

An interest rate lower than the current market, usually subsidized by a government or institution.