Sus Bus Final Exam Questions & Answers





what are subsitiutes? - ANSWERS- firms in different industries

- provide comparable utility

- considered as a choice by the buyer

- serves as a cap on WTP

Ex: southwest substitutes include amtrak, megabus and enterprise rent-a-car



what are rivals? - ANSWERS- firms in the same industry

- provide comparable utility

- compete for the same customers

ex: southwest rivals are other airlines



What effect do substitutes have on an industry? - ANSWE...
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