The forces that can combine to create high rivalry within an industry include all of the following except: a. numerous competitors. b. high fixed costs. c. fast industry growth. d. low switching costs for buyers.
The forces that can combine to create high rivalry within an industry include all of the following except: a. numerous competitors. b. high fixed costs. c. fast industry growth. d. low switching costs for buyers.
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Question 10
Which of the following conditions is most likely to cause fierce rivalry between competitors of an industry?
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Exit barriers in the industry are low |
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Fixed costs in the industry are low |
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Competitors are differentiated from each other |
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Competition is based on the uniqueness of the industry's offerings |
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The growth rate of demand for the industry's offerings is low |
32. âA risk premium is
-âthe difference between the earnings of a low risk asset and a high risk asset
-âpremium paid to a security holder to compensate him for bearing a higher risk â
-both A&B
-ânone of the above
33.âA sudden rise in the market demand in a competitive industry leads to
| -âA short run market equilibrium price higher than the original equilibrium |
| - | âA market equilibrium higher than the short run price |
| - | âSome firms exiting the market |
| - | âAll of the above 34.The IO Economics perspective locates the source of competitive advantage for a firm at theâ
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