According to the Five Competitive Forces Model, the number of competitors in an industryaffects a firm's ability to charge a price above average cost and earn an economic profit, but thisis not the only determinant. Match each situation with the competitive force it exemplifies.а.Threat of new entrantsd.Threat of substitutesRivalry between existing competitorsBargaining power of suppliersBargaining power of customersb.е.с.1. WalMart, the largest retailer in the world, has been able to "strongly influence" thewholesale prices, sizes, and packaging with the producers many of the items it sells.2. The three major providers of cell phone service in this country are continually uppingtheiradvertising efforts to convince potential buyers of the superiority of their product.3. There are only five companies in the world that produce rare earth minerals, used inelectronic devices. At least one of these companies decides to start making these

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According to the Five Competitive Forces Model, the number of competitors in an industry affects a firm's ability to charge a price above average cost and earn an economic profit, but this is not the only determinant. Match each situation with the competitive force it exemplifies.

According to the Five Competitive Forces Model, the number of competitors in an industry affects a firm's ability to charge a price above average cost and earn an economic profit, but this is not the only determinant. Match each situation with the competitive force it exemplifies.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

According to the Five Competitive Forces Model, the number of competitors in an industry
affects a firm's ability to charge a price above average cost and earn an economic profit, but this
is not the only determinant. Match each situation with the competitive force it exemplifies.
а.
Threat of new entrants
d.
Threat of substitutes
Rivalry between existing competitors
Bargaining power of suppliers
Bargaining power of customers
b.
е.
с.
1. WalMart, the largest retailer in the world, has been able to "strongly influence" the
wholesale prices, sizes, and packaging with the producers many of the items it sells.
2. The three major providers of cell phone service in this country are continually upping
their
advertising efforts to convince potential buyers of the superiority of their product.
3. There are only five companies in the world that produce rare earth minerals, used in
electronic devices. At least one of these companies decides to start making these

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