High Uncertainty in Competitive Markets

question 39

Multiple Choice

High uncertainty in competitive markets

• A) increases the number of alliances because uncertainty leads to synergy.
• B) erodes alliances because uncertainty motivates opportunistic behaviors by alliance partners.
• C) encourages firms to form alliances to share risks.
• D) makes alliances among firms less attractive because the markets' profits are meager.

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Definitions:

Flexion

A movement that decreases the angle between two body parts, such as bending a limb at a joint.

Extension

The act of increasing the length, duration, or scope of something beyond the original limit.

Pronation

The inward roll of the foot during normal motion, or the rotational movement of the forearm that turns the palm downward.

Supination

The outward rotation of the forearm or foot, such that the palm or sole faces upwards or forwards.