High levels of competition may be caused by:
A) Rapid industry growth
B) Low fixed costs
C) A small number of competitors
D) A lack of product differentiation

Question

Quizplus · Accepted Answer

A lack of product differentiation makes it difficult for companies to stand out from their competitors, leading to increased competition as they fight for market share. Rapid industry growth and a small number of competitors may actually result in lower competition, while low fixed costs do not necessarily have a direct impact on competition levels.

High Levels of Competition May Be Caused By