Question

Which of the following is not a factor in determining whether the suppliers to an industry are a source of strong, moderate, or weak competitive pressures?

a) Whether certain needed inputs are in short supply

b) Whether it is difficult or costly for industry members to switch their purchases from one supplier to another or to switch to attractive substitute inputs

c) Whether the item being supplied is a standard commodity that is readily available from many suppliers at the going market price

d) Whether the industry supply chain is global or mostly national, whether suppliers have a wide or narrow product line, and whether industry members place orders frequently or infrequently with suppliers

Answer 1

The item being supplied being a standard commodity that is readily available from many suppliers at the market price is not a factor in determining the competitive pressures of suppliers to an industry.

Step-by-step explanation:

The factor that is not a factor in determining whether the suppliers to an industry are a source of strong, moderate, or weak competitive pressures is:

1. Whether the item being supplied is a standard commodity that is readily available from many suppliers at the going market price.

This factor is not relevant to the competitive pressures because if an item is a standard commodity available from many suppliers at the market price, it means that there is a large number of suppliers in the market, leading to higher competition and weaker competitive pressures.