The larger the resources of a firm taking a competitive action compared with the resources of the other firms in the industry, the ____ the response will be of these other firms.
A) more fragmented
B) slower
C) larger
D) more tactical

Question

Quizplus · Accepted Answer

When a larger firm takes competitive action, it can create a sense of intimidation among other firms in the industry who may perceive the larger firm as having greater resources at their disposal. As a result, these other firms may respond more slowly and cautiously to the larger firm's actions. This can be especially true if the larger firm's competitive action involves a significant investment or commitment of resources, as other firms may be reluctant to match this level of resources and risk.

The Larger the Resources of a Firm Taking a Competitive