If more acceptable substitutes are available for a product, the market for the product will:
A)be more profitable.
B)be less profitable.
C)face higher costs.
D)face lower costs.

Question

Quizplus · Accepted Answer

If there are more acceptable substitutes available for a product, the demand for that product will decrease, leading to a decrease in profitability for the producers of that product. Consumers will choose the substitutes, which will also lead to reduced revenue and higher competition for the product. Therefore, the market for the product will be less profitable.

If More Acceptable Substitutes Are Available for a Product, the Market