The Lower the Price of Product Substitutes,the Higher Their Quality

question 83

Multiple Choice

The lower the price of product substitutes,the higher their quality and performance and the lower the user's switching costs,the

• A) harder it is for the sellers of attractive substitutes to lure buyers to their offering.
• B) more intense the competitive pressures posed by substitute products.
• C) less intense the competitive pressures posed by substitute products.
• D) greater rival sellers experience strong bargaining power from both suppliers and influential customers.
• E) less rival sellers experience weak bargaining power from both suppliers and influential customers.

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Definitions:

Highway Spending

Government expenditure on the construction and maintenance of road infrastructure, which is crucial for economic development, transportation efficiency, and public safety.

Administrative Burden

The costs associated with regulatory compliance, paperwork, and bureaucratic procedures that organizations must bear.

Tax Laws

Legislation and regulations governing the collection of taxes by authorities to fund public services and infrastructure.

Efficient Tax System

A tax framework that maximizes revenue without discouraging economic activity or putting undue burden on taxpayers, ensuring fairness, compliance, and minimal distortion in economic decisions.