Question

In: Economics

Jessica is a tomato farmer. According to the Five Forces Framework, under which of the following...

Jessica is a tomato farmer. According to the Five Forces Framework, under which of the following conditions would she face the most intense competition?

Each tomato farmer in the market produces its own hybrid variety of tomato.

Jessica is one of 1,200 tomato farmers who sell in the same tomato market.

There is little threat of new entrants into the market.

There are six suppliers in the market for the main input used by farmers in the tomato market.

The capital costs required to enter the tomato farming industry are very high.

Solutions

Expert Solution

Answer is B

Industry rivalry is high when: – There are number of small or equal competitors and less when there’s a clear market leader. Jessica is in agriculture business and industry rivalry is high. so this is the case of most intense competition that is she faces.


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