题目
题目
单项选择题

In the Five-Forces framework substitutes erode profits because of which of the following factor?

选项
A.Substitutes reduce industry demand and drive up internal rivalry
B.Substitutes compete for similar inputs driving up production cost
C.Manufacturers of substitutes enter markets later and have lower sunk costs
D.Firms producing substitutes use similar worker skills dividing the labor pool
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标准答案
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思路分析
When examining the Five-Forces framework, substitutes affect profitability primarily by influencing demand and competitive intensity within the industry. Option 1: 'Manufacturers of substitutes enter markets later and have lower sunk costs' This statement discusses entry timing and sunk costs, which pertain more to barriers to entry and not directly to how substi......Login to view full explanation

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