Identify Five Factors That Tend to Weaken the Intensity of Competitive

question 88

Essay

Identify five factors that tend to weaken the intensity of competitive rivalry among an industry's member firms.

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Definitions:

Variable Costs

Expenses that change directly in proportion to changes in business activity levels or volumes.

Contribution Margin

The sum of money left over after variable costs are subtracted, which is available to pay for fixed costs and add to profit.

Incremental Manufacturing Cost

The additional cost associated with producing one more unit of a product.

Direct Materials

Raw materials that are directly traceable and a major component of a finished product.