In Which of the Following Circumstances Are Competitive Pressures Associated

question 45

Multiple Choice

In which of the following circumstances are competitive pressures associated with the bargaining power of buyers relatively moderate-to-weak?

• A)The supply of soccer balls increases during the World Cup season.
• B)Consumers can easily compare different smartphones' features over the Internet before buying them.
• C)Apple designs and manufactures its chip processors rather than buying them from Intel.
• D)Dairy products are usually standardized and therefore differentiated only by price.
• E)Buyers tend to delay purchases of luxury goods, such as home entertainment systems, until they are on sale.

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Definitions:

Sunk Cost

A cost that has already been incurred and that cannot be changed by any decision made now or in the future.

Consistency

Refers to the accounting principle that mandates the same accounting methods and procedures to be followed from one financial period to another to ensure comparability of financial statements over time.

Relevant

Pertaining to something that is closely connected or appropriate to the matter at hand, often used in decision-making to determine if information should be considered.

Decisions

Choices made by individuals or organizations concerning options that affect processes, strategies, or outcomes.