A new drug that has shown promise in curing lung cancer has been discovered by a famous chemical laboratory.This is the only drug effective for treatment of this disease.The laboratory obtains a patent for the product and decides to sell it.This situation is characterized by ________.
A)low threat of substitutions
B)high bargaining power of customers
C)high threat of new entrants
D)low bargaining power of suppliers

Question

Quizplus · Accepted Answer

The fact that this drug is the only one effective for treatment of lung cancer implies that there are no substitutes available, therefore there is a low threat of substitutions.

A New Drug That Has Shown Promise in Curing Lung