Customers Tend to Exhibit a Powerful Force on Competition in the Industry

question 12

Multiple Choice

Customers tend to exhibit a powerful force on competition in the industry if:

• A)There are a large number of customers that buy the product
• B)Few similar products exist
• C)Purchases customers make from the industry are large relative to the amount spent for items from other industries
• D)The sellers' products are highly differentiated
• E)The customers are earning high profits

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Definitions:

Price

The sum of money envisaged, obligatory, or handed over as compensation for something.

Income

The money received by a person or organization for work, investments, or from other sources.

Utility Function

A quantitative model showing how buyers prioritize various combinations of products based on their happiness or usefulness.

Apples

A type of fruit that is grown worldwide and comes in various colors and flavors.