Question 6 (1 point)

What is not a typical barriers to entry include:

a)	incumbents' capability to retaliate to entrants

b)	high barriers to exit.

c)	economies of scale

d)	key locations that are crucial for a business ( e.g., access to natural resources).

e)	fast industry growth

Question 7 (1 point)

Which of the following factors does NOT affect supplier power?

a)	Supplier concentration

b)	Undifferentiated products

c)	Switching costs

d)	Few substitutes for supplier products

e)	Few complements for buyer's products

Question 8 (1 point)

Which of the following is an example of a substitute?

a)	Flying Delta Airlines is a substitute of flying United.

b)	Tide dish soap is a substitute of a Gain dish soap.

c)	Flying Southwest is a substitute of a Zoom meeting.

d)	A Rolex watch is a substitute of a Breitling watch.

e)	Buying a camping car is a substitute of staying at a Marriott

Question 9 (1 point)

Which of the following statements about competition and rivalry is TRUE?

a)	Competition on price occurs when there is rivalry within an industry.

b)	High switching costs increase rivalry.

c)	The competition in the luxury goods industries will always be fiercer than it will be in commodities.

d)	There is little competition in industries in which growth is slow.

e)	Tacit collusion leads generally to more intense competition.

Question 10 (1 point)

Which of the following statements is FALSE?

a)	Firms can compete in more than one industry.

b)	Samsung and Apple are competitors in the smartphone market and laptop market.

c)	A rival, a buyer, and a supplier in an industry can be the same player.

d)	Complements generally lead to higher price differentiation.

e)	Complements are relatively independent from the other five forces.