A Low Market-Penetration Index Indicates ________

question 41

Multiple Choice

A low market-penetration index indicates ________.

• A) substantial growth potential for all firms
• B) substantial growth opportunities for few firms
• C) it will be very expensive to attract more prospects
• D) price competition is increasing
• E) profit margins are falling

---

Definitions:

Industry

A sector of the economy characterized by the production or processing of similar goods or services.

High Concentration Ratio

Indicates that a large percentage of a market is controlled by a few firms, which could suggest less competition.

Interindustry Competition

Competition between firms that are in different industries but may target similar markets or customer needs.

Aluminum Industry

Sector of the economy focused on the production, processing, and distribution of aluminum, a lightweight and versatile metal.