Firms would be most likely to face intense rivalry with competitors when they _________.
A) are in a high growth industry with low fixed costs
B) are in a protected market
C) have high fixed costs
D) have low exit barriers for easy transition to another industry

Question

Quizplus · Accepted Answer

Intense rivalry is the result of several interacting factors, including the following: numerous or equally balanced competitors, slow industry growth, high fixed or storage costs, lack of differentiation or switching costs, capacity augmented in large increments, or high exit barriers.

Firms Would Be Most Likely to Face Intense Rivalry with Competitors