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Explain the Reason Why Substitute Products Are Taken as a Threat

question 47

Essay

Explain the reason why substitute products are taken as a threat by firms.


Definitions:

Increasing Rate

A situation where something grows or rises in value at a progressively higher pace over time.

Marginal Cost

The expenditure associated with creating another single unit of a product or service.

Average Variable Cost

The total variable costs of production divided by the quantity of output produced, illustrating the per-unit variable cost.

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