Which One of the Following Increases the Competitive Pressures Associated

question 27

Multiple Choice

Which one of the following increases the competitive pressures associated with the threat of entry?

• A) When incumbent firms are likely to launch competitive initiatives to strongly contest the entry of newcomers
• B) When buyers have a high degree of loyalty to the brands and product offerings of existing industry members
• C) When buyer demand for the product is growing fairly slowly
• D) When few outsiders have the expertise and resources to hurdle whatever entry barriers exist
• E) When newcomers can expect to earn attractive profits

Identify stakeholders in an organization and understand their roles and impacts.

Understand the concept of globalization and its effects on organizational behavior and practices.

Recognize the importance of systematic research in organizational behavior and the role of multidisciplinary theories.

Understand workforce diversity, its benefits, challenges, and trends affecting organizational behavior.

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Definitions:

Average Cost Curve

A graph that illustrates the cost per unit of output by dividing the total cost by the quantity of output produced, typically showing how costs fluctuate with changes in scale.

Marginal Cost Curve

A graph that shows the increase in cost incurred by producing one more unit of a good or service.

U-Shaped

Characterizes graphs or functions that have a visible dip in the middle, creating a shape similar to the letter "U," often found in economic analyses representing cost curves.

Cost Function

A mathematical description of how production costs vary with changes in the quantity of output produced.