Which One of the Following Does NOT Intensify the Competitive

question 105

Multiple Choice

Which one of the following does NOT intensify the competitive pressures associated with the threat of entry?

• A) When incumbent firms are unable or unwilling to launch competitive initiatives to strongly contest the entry of newcomers
• B) When industry members are struggling to earn good profits
• C) When entry barriers are relatively low and buyer demand for the product is growing fairly rapidly
• D) When existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence
• E) When newcomers can expect to earn attractive profits and a number of outsiders have the expertise and resources to hurdle whatever entry barriers exist

Recognize the role of direct materials, direct labor, and applied overhead in product costing.

Understand the impact of lean manufacturing on production efficiency and employee functions.

Identify the appropriate costing system for different types of production environments.

Recognize prime costs and the significance of costing systems in cost management.

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Definitions:

Distributor

A merchant who purchases goods from a seller for resale in a foreign market.

GATT

The General Agreement on Tariffs and Trade, a multilateral treaty aimed at reducing trade barriers and promoting international trade through the elimination of or reduction in tariffs, quotas, and subsidies.

Tariffs and Trades

Government-imposed taxes on imported goods, often used to control trade balances and protect domestic industries.

Self-executing

describes a document, rule, or law that becomes effective immediately without the need for any additional action, enforcement, or formal ratification.