Competitive intensity in a declining industry is greatest when:
A) the industry is declining slowly instead of rapidly.
B) the product is easy to differentiate.
C) exit barriers are high.
D) entry barriers are high.
E) technology is stable.

Question

Quizplus · Accepted Answer

High exit barriers make it difficult for firms to leave the industry, leading to increased competition among remaining firms as they struggle to maintain profitability in a shrinking market.

Competitive Intensity in a Declining Industry Is Greatest When