Rivalry Among Existing Competitors Is More When

question 25

Multiple Choice

Rivalry among existing competitors is more when:

• A) fixed costs are low,and marginal costs are high.
• B) exit barriers are low.
• C) industry growth is slow.
• D) the product is not perishable.

---

Definitions:

Markdown

A reduction from the original selling price of goods or services to increase their attractiveness to buyers.

Monopsony Power

The market power held by a single buyer, allowing them to dictate prices to sellers due to a lack of competition.

Monopoly Power

The ability of a monopolist to significantly control market price and exclude competitors by owning a majority of the market share.

Demand Function

A mathematical relationship expressing the quantity of an item demanded at various prices.