Maximizing Opportunities and Minimizing Threats Presented by the Five Forces

question 25

Short Answer

Maximizing opportunities and minimizing threats presented by the five forces provides some answers to which of the following questions?
a. Why do firms differ?
b. How do firms behave?
c. What determines the scope of the firm?
d. What determines the international success and failure of firms?
e. All of the above.

---

Definitions:

Marginal Cost

The cost incurred by producing an additional unit of a product or service.

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in one of its determinants, such as its price.

Marginal Cost

Marginal cost is the increase in total production cost that arises from producing one additional unit of a product or service.

Subsidy

A financial contribution granted by the government or a public body to help an industry or business keep the price of a commodity or service low.