Profits will be:
A) high regardless of the degree of rivalry.
B) high when the degree of rivalry is high.
C) low when the degree of rivalry is low.
D) low when the degree of rivalry is high.

Question

Quizplus · Accepted Answer

Increased competition (high degree of rivalry) can lead to a decrease in prices and profit margins, making profits lower when the degree of rivalry is high. Therefore, choice D is the best answer.

Profits Will Be