According to the Five Forces framework, the _____ the degree of rivalry in an industry, the _____ the average profits will be in the industry.
A)lower; lower
B)more variable; greater
C)lower; more variable
D)greater; lower

Question

Quizplus · Accepted Answer

According to the Five Forces framework, the greater the degree of rivalry in an industry, the lower the average profits will be in the industry. This is because increased rivalry means more competition, which tends to drive down prices and reduce profit margins. Therefore, option D is the correct answer.

According to the Five Forces Framework, the _____ the Degree