Several Factors Can Create Intense Rivalry Among Firms

question 29

Multiple Choice

Several factors can create intense rivalry among firms.These factors include all of the following factors except:

• A)firms focus on market share at the expense of others.
• B)firms feel pressure due to fixed costs and produce at full capacity.
• C)lack of differentiation in products and services.
• D)upward pressure on prices and profitability.
• E)absence of switching costs for customers.

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Definitions:

Ego Transcendence

A state or process of surpassing the individual self or ego, often associated with the late stages of psychological development.

Identity Diffusion

A state in Erikson's theory of identity development where an individual has not yet experienced a crisis or made any commitments, leading to uncertainty about one's identity.

Socioemotional Selectivity Theory

A theory suggesting that as people age, they shift their social goals towards more emotionally meaningful experiences and relationships.

Aversive Cognitive Distortions

Negative thought patterns that can contribute to emotional distress, viewing situations in a more harmful light than they actually are.