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 е. Rivalry between existing competitors 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 electronic devices also.

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 е. Rivalry between existing competitors 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 electronic devices also.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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