Profitability always rises with market share gains.

Question

Quizplus · Accepted Answer

Profitability does not always rise with market share gains. Increasing market share can lead to economies of scale and higher profits, but it can also lead to increased competition, pricing pressure, and the need for higher marketing and advertising expenses, which can lower profits. Additionally, profitability depends on a variety of factors beyond just market share, including the company's cost structure, pricing strategy, and operational efficiency.

Profitability Always Rises with Market Share Gains