Substitutes Erode Profits Because of Which of the Following Factor

question 28

Multiple Choice

Substitutes erode profits because of which of the following factor?

• A)Substitutes compete for similar inputs driving up production costs
• B)Substitutes divide demand and drive up internal rivalry
• C)Firms producing substitutes use similar worker skills dividing the labor pool
• D)Manufacturers of substitutes enter markets later and have lower sunk costs
• E)None of the above

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Definitions:

Psychological Roots

Fundamental underlying causes or bases of behaviors, thoughts, or emotions from a psychological perspective.

Newborn

An infant who is within hours, days, or up to a few weeks old.

Fivefold

Referring to something that is five times as great or as numerous.

Growth Infancy

The rapid physical and developmental changes that occur in human babies from birth to the end of the first year of life.