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Competitive Environment Assignment

Author:
February 19th, 2020

Which of the following statements concerning the competitive environment is true?

a) High fixed costs encourage firms to produce at a low level of capacity, in order to minimize fixed cost per unit produced.

b) Low current prices relative to costs in an industry indicate low barriers to entry.

c) Substantial economies of scale do not give a current industry member an advantage over a new firm.

d) The ability to substitute another product limits the industry’s profit potential.

e) Buyers and suppliers do not influence the profitability of an industry. Get Finance homework help today

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