Which of the following determines the duration and severity of a shakeout?
A) the geographical location of dominant firms
B) the number of large competitors in the industry
C) whether firms have implemented scale-based value drivers
D) firms' expectations about future demand and the degree of sunk costs

Question

Quizplus · Accepted Answer

The duration and severity of a shakeout in an industry are influenced by firms' expectations about future demand and the degree of sunk costs. These factors affect investment decisions, competitive strategies, and the willingness of firms to endure losses or exit the market.

Which of the Following Determines the Duration and Severity of a Shakeout