Question

A competitive environment where there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers lacks powerful driving forces. gives each industry competitor the best potential for building sustainable competitive advantage over rival firms. makes it challenging for industry members to compete successfully unless they can strongly differentiate their products. is conducive to industry members earning attractive profits. requires that industry members have low costs in order to be competitively successful. A. the industry and competitive arena in which the company operates.

B. general economic conditions plus the factors driving change in the markets being served.
C. all the strategically significant forces and factors outside a company's boundaries — general economic conditions, population demographics, societal values and lifestyles, technological factors, and governmental legislation and regulation.
D. the competitive market environment that exists between a company and its competitors.
E. the dominant economic features of a company's industry.

Answer 1

The student's question relates to a market structure with limited competition due to high barriers to entry, which can result in a monopoly or oligopoly, allowing firms to earn higher profits compared to a perfectly competitive market.

Step-by-step explanation:

The scenario detailed in the student's question pertains to a market structure where competition is limited due to various factors. Barriers to entry such as legal restrictions, technological hurdles, or market forces play a significant role in preventing new competitors from entering the market. This can lead to what is known as a monopoly, where a single firm dominates the market, or an oligopoly, where a few firms have considerable control.

In such markets, the lack of significant competition and weak competition from substitute products often allows existing firms to enjoy higher profits. However, if a firm earns positive economic profits, this could, under different conditions, encourage new entrants, assuming they can overcome the barriers to entry. This competitive dynamic is contrasted with the theoretical model of perfect competition, which is characterized by a large number of sellers, identical products, and no barriers to market entry.

Answer 2

The answer is ; is conducive to industry members earning attractive profits.

Step-by-step explanation: