Rivalry among competing sellers increases:
A) when buyer demand is growing slowly.
B) as it becomes more costly for buyers to switch brands.
C) as the products of rival sellers become more strongly differentiated.
D) when there is underproduction relative to demand..
E) as the number of competitors decreases.

Question

Quizplus · Accepted Answer

When buyer demand is growing slowly, sellers compete more aggressively to capture a larger share of the stagnant market, increasing rivalry.

Rivalry Among Competing Sellers Increases