When Rival Firms Compete Aggressively by Trying to Attract Competitors

question 105

Multiple Choice

When rival firms compete aggressively by trying to attract competitors' customers, this might be an indication of:

• A) an industry with low exit barriers.
• B) increasing economies of scale.
• C) slow industry growth.
• D) high bargaining power among buyers.

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Definitions:

Heart

A muscular organ in most animals, which pumps blood through the blood vessels of the circulatory system by rhythmic contraction and dilation.

Arrector Pili

Small muscles connected to hair follicles that, when contracted, cause hair to stand up, producing 'goosebumps'.

Goose Bumps

The raising of small bumps on the skin due to the contraction of miniature muscles at the base of hair follicles, usually in response to cold or fear.

Hair Follicles

The skin organ that produces hair, consisting of a small tubular cavity containing the root of a hair and located in the dermis of the skin.