Explain what the Five Forces Model is useful for and identify each of them
What will be an ideal response?
The Five Forces Model is a model that helps economists understand the competitive forces that determine the level of competition and profitability in an industry. Those forces are potential entrants, buyers, suppliers, substitutes and the rivalry among existing firms.
You might also like to view...
A central bank like the Federal Reserve in the United States can help banks survive a bank run by
A) raising the discount rate. B) acting as a lender of last resort. C) printing money. D) increasing the required reserve ratio.
When there is a shortage I. there is a tendency for price to increase. II. there is an excess quantity demanded
A) I only B) II only C) Both I and II D) Neither I nor II
The graph depicting the inverse relationship between the economy's rate of unemployment and rate of inflation is called the
a. Laffer curve b. aggregate expenditure model c. Keynesian cross d. Phillips curve e. consumption curve
If marginal product is negative, then
A) total product is rising. B) total product is falling. C) marginal cost is falling. D) average profit is rising.