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:

Rear Wheel Lock-up

A dangerous condition where the rear wheels of a vehicle cease to rotate while in motion, often leading to loss of control.

Disc/drum System

A braking system combining both disc and drum brake technologies, typically with discs on the front wheels and drums on the rear.

Dual Circuit Hydraulic

A hydraulic system design that features two independent circuits for added safety and redundancy, often used in brake systems.

Tandem Master Cylinder

A type of master cylinder in vehicle brake systems designed with two pistons in one cylinder to provide a fail-safe mechanism in case one circuit fails.