In the automobile parts industry,products are undifferentiated,so the industry is most likely characterized by ________.

A) low switching costs
B) patented technologies
C) high capital requirements
D) limited distribution channels

Question

Hadeel Hazzaa · Accepted Answer

Final Answer : A, Explanation :  Since automobile parts are undifferentiated, customers can easily switch from one supplier to another without incurring significant switching costs. Therefore, the industry is most likely characterized by low switching costs. The other options (patented technologies, high capital requirements, and limited distribution channels) do not accurately describe the characteristics of the automobile parts industry.

In the automobile parts industry,products are undifferentiated,so the industry is most likely characterized by ________.

A) low switching costs
B) patented technologies
C) high capital requirements
D) limited distribution channels

Definitions

Learning Objectives

Learning Objectives

Related questions

In the automobile parts industry,products are undifferentiated,so the industry is most likely characterized by ________.A) low switching costsB) patented technologiesC) high capital requirementsD) limited distribution channels

Definitions

Learning Objectives

Learning Objectives

Related questions

In the automobile parts industry,products are undifferentiated,so the industry is most likely characterized by ________.

A) low switching costs
B) patented technologies
C) high capital requirements
D) limited distribution channels