Rivalry among firms would tend to be highest if a. the industry is growing quickly b. the industry is growing slowly c. the industry is shrinking d. None of the above

Question

Delaney Weber

Business

3 March, 21:13

Rivalry among firms would tend to be highest if a. the industry is growing quickly b. the industry is growing slowly c. the industry is shrinking d. None of the above

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Answers (1)

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Kiana Ochoa · Answer 1

The correct answer is letter "A": the industry is growing quickly.

Explanation:

The more companies within the same industry offering undistinguished products or services the more competitive that market will be. Firms will have to constantly look for methods to differentiate their product from competitors more than just offering competitive prices. Product quality and customer service could be decisive for a firm's operations to continue or stop gradually.

Thus, a fast-growing industry increases rivalry among the companies that compose that market.