Each of the Following Is One of the Forces Affecting

question 129

Multiple Choice

Each of the following is one of the forces affecting industry competition,except:

• A) threat of new entrants
• B) the power of buyers
• C) diversification
• D) threat of substitute products
• E) the power of suppliers.

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Definitions:

Output

The total amount of goods or services produced by a company, industry, or economy within a certain period.

Variable Cost

Costs that vary directly with the level of production or output, such as materials and labor directly used in the manufacturing process.

Average Cost

Generally refers to the average total cost, representing the per unit total cost of production, including both fixed and variable costs.

Average Total Cost Curve

A graphical representation showing how the average cost of production changes as the quantity of output is altered.