Intensified rivalry within an industry results in:
A) Increased hiring across the industry
B) Increased total revenues across the industry
C) Decreased average profitability across the industry
D) Increased entries into the industry

Question

Quizplus · Accepted Answer

Intensified rivalry within an industry means that companies are competing more fiercely for market share, which can lead to price wars, increased advertising expenses, and lower profit margins. As a result, the average profitability across the industry decreases. Options A and B are not necessarily true as hiring and total revenues in the industry may not be impacted by increased rivalry. Option D is also not necessarily true as increased rivalry may discourage new entries into the market.

Intensified Rivalry Within an Industry Results In