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A Large Pharmaceutical Company Decides to Reduce the Price of a Medication

Question 44

Multiple Choice

A large pharmaceutical company decides to reduce the price of a medication to encourage physicians to continue prescribing it as generic brands have entered the market. According to the five forces model, which competitive force is the company addressing?


A) low industry rivalry
B) high brand loyalty
C) power of large customers
D) threat of substitute products
E) power of large suppliers

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