Hospitals and Universities Are Very Expensive to Run Because of the Capital
Hospitals and universities are very expensive to run because of the capital and equipment required. The requirement of personnel such as specialized medical doctors and researchers are also high. Which of the following is this an example of?
C) barriers to entry
Kegg's Cereals Inc. is a major supplier to almost all grocery store chains. It has most of the valuable shelf space in the cereal aisle. Which of the following is true based on this information?
A) There are few entry barriers.
B) Government regulation of cereals is high.
C) The threat of new entrants is low.
D) Competitors have the larger market share.
E) Customers have high bargaining power.
The main difference between final consumers and intermediate consumers is that the final consumers
A) pay cash.
B) use products themselves.
C) purchase more than intermediate consumers.
D) are not as flexible as intermediate consumers.
E) do not have any bargaining power.
Ted Inc. traditionally provides subcontracting services to construction firms. There are many firms like Ted Inc. in the marketplace, but it does about 85 percent of the work for Will's Construction Corp. Will typically negotiates quite heavily, reducing Ted's profits. This situation is indicative of the high bargaining power of
C) substitute companies.
E) complementary firms.