In the context of rivalry among present competitors,which of the following is true?
A)Firms are mostly independent of one another.
B)Profitability increases as rivalry increases.
C)Rivalry is greater when the rate of investment intensity is low.
D)Rivalry occurs among firms producing goods that are substitutes for each other.

Question

Quizplus · Accepted Answer

Rivalry occurs when firms produce goods that are substitutes for each other, as they compete for the same customers. In this context, firms are not independent but rather interdependent, and profitability typically decreases as rivalry intensifies. Investment intensity is not directly related to rivalry.

In the Context of Rivalry Among Present Competitors,which of the Following