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 b. Bargaining power of suppliers Bargaining power of customers Rivalry between existing competitors е. с. 4. All of the companies in the parcel delivery service are making substantial economic profits, so Amazon decides to start its own service that delivers goods not only sold through Amazon but by outside companies as well. 5. Because of the high profits earned by insulin-makers, pharmaceutical researchers are actively trying to develop new, different drugs that have the same results for diabetics.

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 b. Bargaining power of suppliers Bargaining power of customers Rivalry between existing competitors е. с. 4. All of the companies in the parcel delivery service are making substantial economic profits, so Amazon decides to start its own service that delivers goods not only sold through Amazon but by outside companies as well. 5. Because of the high profits earned by insulin-makers, pharmaceutical researchers are actively trying to develop new, different drugs that have the same results for diabetics.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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