Resource similarity and __________ are factors that determine the extent to which firms will be in direct competition with each other.
A) market commonality
B) resource similarity
C) related diversification
D) product differentiation
E) customer autonomy

Question

Quizplus · Accepted Answer

Resource similarity is already listed in the first part of the sentence as a factor and the question is asking for the additional factor that determines the extent of direct competition. Market commonality is the best fit because it refers to the degree to which two firms have overlapping target markets. If two firms have high market commonality, they are more likely to be in direct competition with each other.

Resource Similarity and __________ Are Factors That Determine the Extent