A company's profitability increases as a business gains share relative to competitors in its served market.

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Quizplus · Accepted Answer

This statement is generally true, as a company with a larger market share can benefit from economies of scale, increased bargaining power, and greater brand recognition, all of which can improve their profitability. However, there may be exceptions where a company with a smaller market share may be more profitable due to niche positioning, lower costs, or other factors.

A Company's Profitability Increases as a Business Gains Share Relative