Which of the Following Statements Concerning the Competitive Environment Is

question 11

Multiple Choice

Which of the following statements concerning the competitive environment is true?

• A) High fixed costs encourage firms to produce at a low level of capacity, in order to minimise fixed cost per unit produced.
• B) Low current prices relative to costs in an industry indicate low barriers to entry.
• C) Substantial economies of scale do not give a current industry member an advantage over a new firm.
• D) The ability to substitute another product limits the industry's profit potential.
• E) Buyers and suppliers do not influence the profitability of an industry.

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Definitions:

Obstructionist Strategy

A business strategy where a company takes active steps to block or derail certain actions or initiatives, often for competitive or ethical reasons.

Corporate Social Responsibility

A business model that involves companies integrating social and environmental concerns in their operations and interactions with their stakeholders.

Prevailing Societal Norms

The dominant principles, standards, or behaviors that are accepted and practiced within a society.

Obstructionist Strategy

A business tactic where a company deliberately impedes or obstructs efforts, such as regulatory compliance or lawsuits, often to protect its own interests.