The Nature and Strength of the Competitive Forces That Prevail

question 14

Multiple Choice

The nature and strength of the competitive forces that prevail in an industry is generally a joint product of

• A) the pressures induced by the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry.
• B) the threat that firms outside the industry will decide to enter the market.
• C) the attempts of companies in other industries to win buyers over to their own substitute products.
• D) competitive pressures stemming from the bargaining power of both suppliers and buyers.
• E) All of these.

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Definitions:

Price-Inelastic Demand

A situation where the demand for a good or service is relatively unaffected by changes in its price.

Household Budget

a financial plan that allocates future personal income towards expenses, savings, and debt repayment.

Market Changes

Alterations or shifts in the conditions of a market, which can include changes in consumer preferences, technological advancements, or variations in supply and demand.

Necessity

A good or service that is essential for survival and basic quality of life, such as food and shelter.