A new drug that has shown promise in curing skin cancer has been discovered by a famous chemical laboratory. This is the only known 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 the laboratory

Question

Quizplus · Accepted Answer

Since the drug is the only known effective treatment for skin cancer, there are no substitutes available, leading to a low threat of substitutions.

A New Drug That Has Shown Promise in Curing Skin