In intense rivalry among manufacturing firms,fixed costs are:
A) High
B) Low
C) Medium
D) Less critical than variable costs

Question

Quizplus · Accepted Answer

In intense rivalry among manufacturing firms, fixed costs are usually high. This is because firms are investing in fixed assets such as factories, equipment, and technology to try to gain a competitive edge. These costs cannot easily be reduced in the short term, and so they become a significant factor in the firm's profitability and competitiveness.

In Intense Rivalry Among Manufacturing Firms,fixed Costs Are