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Which of the Following Is True of the Competitive Dynamics

Question 5

Multiple Choice

Which of the following is true of the competitive dynamics of an industry?


A) An increase high leverage ratio could be indicative of a firm's intention to increase production.
B) Leverage has no impact on the competitive dynamics of an industry.
C) An increase in leverage is usually indicative of defensive behaviour.
D) The greater a firm's leverage,the less its incentive to produce a high level of output.

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