In Which of the Following Circumstances Are Competitive Pressures Associated

question 39

Multiple Choice

In which of the following circumstances are competitive pressures associated with the bargaining power of buyers not relatively strong?

• A) When buyer demand is growing rapidly
• B) When buyers are relatively well informed about sellers' products, prices, and costs
• C) When buyers pose a major threat to integrate backward into the product market of sellers
• D) When sellers' products are weakly differentiated, making it easy for buyers to switch to competing brands
• E) When buyers have considerable discretion over whether and when they purchase the product

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Definitions:

Short-run

A period in which at least one factor of production is fixed, limiting the ability to adjust to changes in market conditions.

Perfectly Competitive Industries

Markets where there are many buyers and sellers, products are homogeneous, and no single entity has the ability to influence prices.

Quantity Of Output

The total amount of goods or services produced by an individual, firm, industry, or entire economy in a given period.

Price To Charge

Price to Charge refers to the amount a business decides to set for its product or service, taking into account costs, competitive prices, and profit margins.