________ determine the extent to which two firms are competitors.
A)Relative size and degree of innovation market
B)Relative size and market similarity
C)Speed of response and quality
D)Market commonality and resource similarity

Question

Quizplus · Accepted Answer

Market commonality and resource similarity are the two key factors in determining the extent to which two firms are competitors. Market commonality refers to the degree of overlap between the markets served by the two firms, while resource similarity refers to the extent to which the firms use similar resources to compete in these markets. By considering these factors, companies can determine the level of competition they face from other firms in the same industry. Relative size and market similarity, as well as speed of response and quality, are important factors in their own right, but do not directly determine the extent of competition between firms.

________ Determine the Extent to Which Two Firms Are Competitors