Rivalry among competing sellers is generally more intense when
A)buyer demand is growing rapidly.
B)the industry's driving forces are strong and rivals have strongly differentiated products.
C)barriers to entry are moderately high and the pool of likely entry candidates is small.
D)industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit volume.
E)barriers to entry are high and buyer switching costs are high.

Question

Quizplus · Accepted Answer

When industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit volume, rivalry among competing sellers is generally more intense. This is because when competitors are using price cuts as a competitive weapon, it becomes difficult for other firms to maintain their market positions and profit margins, leading to intense competition.

Rivalry Among Competing Sellers Is Generally More Intense When