Studies have shown that,on average,profitability rises with increasing market share.

Question

Quizplus · Accepted Answer

It is generally true that profitability rises with increasing market share. This is because having a larger market share often allows a company to benefit from economies of scale, reduce costs, and potentially earn higher prices for their products or services. However, there can be exceptions to this rule, such as when a company's growth strategy involves heavy investment in gaining market share but not necessarily generating immediate profits.

Studies Have Shown That,on Average,profitability Rises with Increasing Market Share