The Most Powerful of the Five Typical Sources of Competitive

question 34

Multiple Choice

The most powerful of the five typical sources of competitive pressures is usually

• A)the competitive pressures associated with the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry.
• B)the competitive pressures that stem from the ready availability of attractively priced substitute products.
• C)the benefits that emerge from close collaboration with suppliers and the competitive pressures that such collaboration creates.
• D)the bargaining power and leverage that large customers are able to exercise.
• E)associated with the potential entry of new competitors.

---

Definitions:

Average Fixed Costs

The total fixed costs divided by the quantity of output produced; they decrease as output increases.

Silk Flower Arrangements

Artificial floral displays made from silk or similar synthetic materials, often used as decorations.

Variable Cost

Costs that change in proportion to the level of activity or volume of goods produced in a business.

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service.