Which of the Following Is TRUE About the Threat of Substitutes

Multiple Choice

Which of the following is TRUE about the threat of substitutes?

A) When threatened by substitutes,existing competitors will increase their prices.
B) innovation makes an existing product or service more attractive to its customers.
C) If there are numerous substitutes,the firm's profit margins and revenues will decline.
D) If the competitors are strong,existing competitors will not react strongly to the threat of substitutes.