Which of the Following Is True Regarding Competitive Rivalry

question 60

Multiple Choice

Which of the following is true regarding competitive rivalry?

• A)The more competitors an industry has,the higher will be the differentiation among them.
• B)High differentiation among competitors increases competitive rivalry.
• C)Excess capacity within an industry can cause competitors to intensify their moves against one another.
• D)Intense competitive rivalry leads to higher prices and margins.
• E)Intense competitive rivalry leads to lower marketing and sales expenses for retaining customers.

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Definitions:

Competitors

Other businesses or entities that offer similar products or services within the same market, vying for the same customer base.

Firm Locating

The process businesses use to choose a site for their operations that optimizes logistical, cost, and operational efficiency.

Factor-Rating Method

A technique used in operations management and decision making that evaluates and compares various factors by assigning them scores.

Tangible Costs

Readily identifiable costs that can be measured with some precision.