Lu Runs a Company That Manufactures Satellites for Commercial and Government

Multiple Choice

Lu runs a company that manufactures satellites for commercial and government use. It has few rivals. At the moment, the power of buyers, the power of suppliers, and the threat of substitutes are all low. Based on this information, what can Lu conclude?

A) The manufacturer is likely to see little profit until the power of buyers improves.
B) In this scenario, suppliers are likely to create and sell effective substitutes.
C) This firm is an example of near-perfect competition.
D) The company is likely to be very profitable as long as the threat to entry is low.