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Answer: D
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Which of the following factors is least typical of an industry that faces intense competitive rivalry?
A. Large advertising budgets.
B. A high threat of substitutes.
C. Price-cutting.
D. Frequent introduction of new products.
Answer: B
Explanation:
A high threat of substitutes reduces the attractiveness of an industry. It tends to increase the price elasticity of demand and therefore limits price increases and profit margins. If other factors are constant, fewer entrants result in less intense competition.
NEW QUESTION: 3
A. Option E
B. Option C
C. Option B
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F. Option A
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