Rivalry Among Competing Sellers Is Generally More Intense When

question 5

Multiple Choice

Rivalry among competing sellers is generally more intense when:

• A) there are relatively few industry key success factors.
• B) the industry's driving forces are strong and rivals have strongly differentiated products.
• C) barriers to entry are moderately high and the pool of likely entry candidates is small.
• D) rivals are active in making fresh moves to lower prices,introduce new products,increase promotional efforts and advertising,and otherwise gain sales and market share.
• E) barriers to entry are high and buyer switching costs are high.

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Definitions:

New York Stock Exchange (NYSE)

The largest stock exchange in the world by market capitalization, located in New York City.

Inside Quotes

The highest bid and the lowest ask prices among various market makers or participants in a financial market for a particular security.

Limit Order Book

A record of all outstanding limit orders in a particular security, organized by price level.

Institutional Investors

Large organizations, such as pension funds, insurance companies, and mutual funds, that invest substantial amounts of money in securities and assets, often on behalf of others.