Which of the Following Is TRUE About the Threat of Substitutes

question 62

Multiple Choice

Which of the following is TRUE about the threat of substitutes?

• A)When threatened by substitutes,existing competitors will increase their prices.
• B)Innovation makes an existing product or service more attractive to its customers.
• C)If there are numerous substitutes,the firm's profit margins and revenues will decline.
• D)If the competitors are strong,existing competitors will not react strongly to the threat of substitutes.

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