The higher the ____ the more likely firms are to cut prices and in turn their profits.
A) New entrants
B) Substitutes
C) Rivalry
D) Suppliers
E) Buyers

Question

Quizplus · Accepted Answer

Higher rivalry among existing competitors in a market often leads to price wars, which can result in firms cutting prices to maintain or increase their market share, thereby reducing their profits.

The Higher the ____ the More Likely Firms Are to Cut