According to Michael Porter, There Are Five Determinants of Competition

question 20

Multiple Choice

According to Michael Porter, there are five determinants of competition. An example of _____ is when competitors seek to expand their share of the market.

• A) threat of entry
• B) rivalry between existing competitors
• C) pressure from substitute products
• D) bargaining power of buyers
• E) bargaining power of suppliers

---

Definitions:

Utility Function

A mathematical representation of how consumers rank different bundles or combinations of goods and services according to the level of satisfaction or utility those combinations provide.

Paasche Price Index

An economic measure that calculates the change in the cost of acquiring a given basket of goods and services in the current period compared to a base period, using the current period quantities as weights.

Doggerel

A term used to describe poetry that is irregular in rhythm, rhyme, or is of a trivial or low quality.

WARP

Stands for the Weak Axiom of Revealed Preference, a criterion used in consumer choice theory to assess whether observed choices are consistent with rational behavior.