When a seller considers the threat of potential substitutes, what is a substitute product?
A)It is anything that a company could produce using the same inputs as needed to produce its current product.
B)It is a new company that enters the market by producing a product identical to other companies.
C)It is what is made when a company can use more labor and less capital or less labor and more capital to produce its product.
D)It is anything that could be consumed in place of a given product to satisfy the need or want of the consumer for the given product.

Question

Quizplus · Accepted Answer

A substitute product is anything that could be consumed in place of a given product to satisfy the need or want of the consumer for the given product. It does not necessarily need to be produced using the same inputs, nor does it refer to a new company producing an identical product. It simply refers to any product that could be used as an alternative to the original product.

When a Seller Considers the Threat of Potential Substitutes, What