MORE THAN ONE CORRECT ANSWER FOR BOTH QUESTIONS

Supply-side economies of scale

	a.	arise when a buyer's willingness to pay for a company's product increases with the number of other buyers who patronize the company.
	b.	encourage new entrants to the market.
	c.	are limited to the manufacturing sector.
	d.	force aspiring industry entrants to enter the market on a large scale.

According to Porter, rivalry among competitors is greater

	a.	when low investment intensity exists in businesses.
	b.	when dominant firms exist in an industry.
	c.	when low switching costs exist for the buyers.
	d.	when strong product differentiation exists among current players.