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The Rivalry Among Competing Firms Tends to Be More Intense

Question 34

Multiple Choice

The rivalry among competing firms tends to be more intense


A) when demand for the product is growing slowly, one or maybe several industry members become dissatisfied with their market position, buyers have low switching costs, and when strong companies outside the industry acquire weak firms in the industry and launch aggressive moves to build market share.
B) when the products/services of rival sellers are strongly differentiated and buyer demand is strong.
C) when rivals are relatively content with their market position.
D) when there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members.
E) the smaller the number of firms in the industry and the more unequal their market shares.

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