Identify a True Statement About Substitutes

Multiple Choice

Identify a true statement about substitutes.

A) Substitutes put upward pressure on the price that firms in an industry can charge.
B) Substitutes give a firm the freedom to charge customers high prices for their products.
C) It is a product with the same basic characteristics and is made using the same general set of inputs.
D) It is a product that is fundamentally different yet serves the same basic function as another product.