The rivalry among competing sellers tends to be less intense when
A) industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit sales.
B) buyer demand is weak and many sellers have excess capacity and/or inventory.
C) industry rivals are not particularly aggressive in drawing sales and market share away from rivals.
D) rivals have diverse strategies and objectives and are located in different countries.
E) rival sellers have weakly differentiated products.

Question

Quizplus · Accepted Answer

When industry rivals are not particularly aggressive in drawing sales and market share away from rivals, the intensity of competition among competing sellers tends to be less. This may happen when there is a mutual understanding among competitors to avoid aggressive price competition or when there is a coexistence of niche markets.

The Rivalry Among Competing Sellers Tends to Be Less Intense