In Which of the Following Instances Is Rivalry Among Competing

question 97

Multiple Choice

In which of the following instances is rivalry among competing sellers not more intense?

• A)when certain competitors are dissatisfied with their market position and make moves to bolster their standing
• B)when strong companies outside the industry acquire weak firms in the industry and launch aggressive moves to transform their newly acquired competitors into stronger market contenders
• C)when competitors are fairly equal in size and capability
• D)when the products of rivals are weakly differentiated, buyer switching costs are low, and market demand is growing slowly
• E)when there are vast numbers of small rivals so the impact of any one company's actions is spread thinly across all industry members

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Definitions:

Capital Gains

Capital gains are the profit earned from the sale of an asset, such as stock or real estate, which has increased in value over the holding period.

Rate of Return

The increase or decrease in the value of an investment during a predetermined period, represented as a percentage of the investment's starting cost.

Net Asset Value

The total value of a fund's assets minus its liabilities, often used in the context of mutual funds to determine per share price.

Dividend Income Distributions

The payment of earnings declared by a company to its shareholders, typically in the form of cash or additional shares.