When the total market expands, the dominant firm usually gains the most.

Question

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When the total market expands, the dominant firm is usually in the best position to capture the greatest share of the new market opportunities, due to its existing size, resources, and brand recognition. This allows the dominant firm to leverage economies of scale and scope to offer lower prices or better products, and to invest in marketing and innovation to maintain or extend its lead over smaller competitors.

When the Total Market Expands, the Dominant Firm Usually Gains