Factors that cause the rivalry among competing sellers to be weaker include
A) low buyer switching costs.
B) low fixed costs or storage costs.
C) many industry rivals of roughly equal size and competitive strength.
D) weakly differentiated products among rival sellers.
E) slow growth in buyer demand.

Question

Quizplus · Accepted Answer

When the fixed costs or storage costs are low, it is easier for new firms to enter the market, which increases the number of competitors. This makes the rivalry among them weaker as no one firm can dominate the market.

Factors That Cause the Rivalry Among Competing Sellers to Be