The intensity of competition is greater in declining industries in which:
A) the industry is declining slowly instead of rapidly.
B) the product is easy to differentiate.
C) exit barriers are high.
D) entry barriers are high.
E) technology is stable.

Question

Quizplus · Accepted Answer

In declining industries, exit barriers are typically high, which means that firms are reluctant to leave the industry even if they are operating at a loss. This results in a higher number of competing firms, which increases the intensity of competition.

The Intensity of Competition Is Greater in Declining Industries in Which