A Competitive Environment in Which There Is Weak to Moderate

question 33

Multiple Choice

A competitive environment in which there is weak to moderate rivalry among sellers,high entry barriers,weak competition from substitute products,and little bargaining leverage on the part of both suppliers and customers

• A)lacks powerful driving forces.
• B)gives each industry competitor the best potential for building sustainable competitive advantage.
• C)makes it hard for industry members to pursue a differentiation strategy.
• D)is conducive to industry members earning attractive profits.
• E)requires that industry members have low costs.

---

Definitions:

Level Of Activity

The volume of output or production activity attained within a specified period, often used to measure the efficiency and capacity utilization of a business.

Cost Behavior

The manner in which a cost changes in relation to its activity base (driver).

Managerial Decision Making

Involves the process by which managers make choices among possible alternatives to solve problems and take advantage of opportunities.

Variable Costs

Variable costs are expenses that vary directly with the level of production or output, such as materials and labor.