Ask Question
BusinessBusiness
20 August, 00:56

According to Michael Porter, the weaker each of the competitive forces, the more limited companies are in their ability to raise prices and earn greater profits. True False

+2
Answers (1)
  1. 20 August, 04:02
    0
    False

    Explanation:

    According to Michael Porter in an industry the larger the number of competitors the larger the number of equivalent products, and the less the power of the company to increase price of its products. This is because there are wide range of products that can substitute theirs.

    On the other hand when there is weak competition, the number of subsititute products will be low and the company can increase price and make profit.

    So the argument that the weaker each of the competitive forces, the more limited companies are in their ability to raise prices and earn greater is false.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “According to Michael Porter, the weaker each of the competitive forces, the more limited companies are in their ability to raise prices and ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
What is most likely to happen if the Fed prints too much currency? a. A decrease in product prices b. A decrease in the number of banks c. An increase in inflation d. An increase in spending power
Answers (1)
A trial balance has total debits of $20,000 and total credits of $24,500. Which one of the following errors would create this imbalance? Explain. a.
Answers (1)
A situation in which consumers want more of a good or service than producers are willing to make available at a particular price.
Answers (1)
Which business type is notably the easiest to acquire
Answers (2)
KellyAnne Public Relations just paid an annual dividend of $1.27 on its common stock and increases its dividend by 3.4 percent annually. What is the rate of return on this stock if the current stock price is $38.56 a share:a. 6.81% b. 7.87% c. 7.
Answers (1)
New Questions in Business
Molly hue apparels inc. (mha) had been outsourcing its production to less-developed countries in order to reduce its cost of production. with the emergence of its competitor, hova inc., mha lost its competitive advantage.
Answers (1)
Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served.
Answers (1)
When is it productive to set up a folder system for filing emails
Answers (2)
Mccracken roofing, inc., common stock paid a dividend of $1.161.16 per share last year. the company expects earnings and dividends to grow at a rate of 66 % per year for the foreseeable future. a.
Answers (1)
Which of the following should be accounted for in an enterprise fund? Light poles to be paid for in installments by affected property owners $ 350,000Van used to transport supplies to all city departments on a cost reimbursement basis
Answers (1)
Home » Business » According to Michael Porter, the weaker each of the competitive forces, the more limited companies are in their ability to raise prices and earn greater profits. True False
Sign Up Forgot Password?