Under which of the following conditions will companies with low market share be most likely to fail?
A) competing in a slow-growth industry
B) competing in an industry that makes frequently purchased items
C) competing in an industry with few product changes
D) competing in an industry requiring market power and economies of scale
E) competing in none of these industries

Question

Quizplus · Accepted Answer

Companies with low market share are most likely to fail in industries that require market power and economies of scale. In such industries, companies with high market share have a cost advantage and are able to achieve higher profitability, making it harder for companies with low market share to compete and survive.

Under Which of the Following Conditions Will Companies with Low