Which of the following is not one of the four factors that affects the intensity of competition in Porter's Five Forces Model:
A. Intensity of competition
B. The bargaining power of buyers
C. The bargaining power of suppliers
D. The threat of new entrants
Ans: A. Intensity of competition
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Other things being equal, an increase in the default risk of corporate bonds shifts the demand curve for corporate bonds to the ________ and the demand curve for Treasury bonds to the ________
A) right; right B) right; left C) left; right D) left; left
The U.S. merchandise trade balance has been in surplus over the last 20 years
Indicate whether the statement is true or false
Which of the following is not a primary determinant of consumption spending?
A. Wealth B. Rate of return on capital C. Real income D. Interest rates on savings
Refer to the below graph of a representative firm in monopolistic competition. If curve (2) represents ATC and line (3) represents demand, then we can conclude that the industry:
A. Has positive economic profits
B. Is in long-run equilibrium
C. Will contract in the long run
D. Is not maximizing profits