BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Porter defined substitutes as something that performs the same or similar function as an industry’s product by different means. Where the threat of substitutes is high, industry profitability suffers. He noted that strategists should be alert to changes in other industries that may impact on their own.

Detailed explanation-2: -A substitute performs the same or a similar function as an industry’s product by a different means. Sometimes the threat of a substitute is indirect.

Detailed explanation-3: -Monopolistic Competition is defined as an environment wherein the market participants sell differentiated products, yet serve the same end market. In economics, monopolistic competition is considered to be a hybrid between a monopoly and perfect competition, as the market structure blends the characteristics of each.

Detailed explanation-4: -Also, oligopolies are price setters; therefore, they have market power in the economy, and it affects the consumers due to increases in prices by the oligopolists. However, in perfect competition, many sellers produce similar products; therefore, consumers can choose between firms.

Detailed explanation-5: -Approved July 2, 1890, The Sherman Anti-Trust Act was the first Federal act that outlawed monopolistic business practices. The Sherman Anti-trust Act of 1890 was the first measure passed by the U.S. Congress to prohibit trusts.