Which of Porter's Five-Forces Is Most Directly Influenced by the Following

question 19

Multiple Choice

Which of Porter's Five-Forces is most directly influenced by the following factors: number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs?

• A) threat of new entrants
• B) rivalry among existing firms
• C) threat of substitutes
• D) bargaining power of buyers
• E) bargaining power of suppliers

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Definitions:

Utility Increases

A situation where the satisfaction or benefit derived from consuming goods or services rises.

Diminishing Marginal Utility

The principle that as more of a good or service is consumed, the additional satisfaction or utility gained from consuming an additional unit decreases.

Sodas

Carbonated beverages, often sweetened and flavored, forming part of the non-alcoholic drinks market.

Marginal Utility

The additional satisfaction or utility that a person receives from consuming one more unit of a good or service.