RT

问题如下：

Q. Based on the current competitive landscape presented in Exhibit 1, French should conclude that Archway’s ability to:

选项：

A.pass along price increases is high. B.demand lower input prices from suppliers is low. C.generate above-average returns on invested capital is low.

解释：

A is correct. Porter’s five forces framework in Exhibit 1 describes an industry with high barriers to entry, high customer switching costs (suggesting a low threat of substitutes), and a specialized product (suggesting low bargaining power of buyers). Furthermore, the primary production inputs from the large group of suppliers are considered basic commodities (suggesting low bargaining power of suppliers). These favorable industry characteristics will likely enable Archway to pass along price increases and generate above-average returns on invested capital.