Firms That Were Successful in the Past Can Fail Today

question 95

Multiple Choice

Firms that were successful in the past can fail today because

• A) they keep pace with changes in the nature of competition.
• B) the company strategy is outdated.
• C) their financial situation is resilient.
• D) management monitors the relevant environmental factors regularly.

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Definitions:

Equilibrium

a state in economics where supply equals demand, resulting in a stable market condition.

Trigger Strategy

A strategy in repeated games where a player's response is conditioned on past behavior, such as retaliating or cooperating based on the other player's previous actions.

Repeated Game

A strategic interaction that occurs multiple times, allowing players to potentially develop strategies based on past outcomes.

Price Competition

A type of competition in which companies try to attract customers by offering lower prices than their competitors.