Asked by Tanita Passmore on Sep 24, 2024
Verified
Rivalry among firms would tend to be high if
A) Customers are locked into the competitors technology
B) Customers can easily switch between competitor's technologies
C) All of the above
D) None of the above
Rivalry Among Firms
Describes competition between businesses in the same industry aimed at gaining increased market share, revenues, and customer loyalty.
Customers Locked
A situation where customers are bound to a service or product, often through contracts, making it difficult for them to switch to competitors.
Switch Technologies
Changing or transitioning from one technology to another, often to improve efficiency, performance, or to embrace newer standards.
- Comprehend the impact of market organization on competition between firms and their financial success.
Verified Answer
SK
Saran Kunwar1 day ago
Final Answer :
B
Explanation :
When customers can easily switch between competitors' technologies, it increases the level of competition between the firms as they have to offer better products or services to attract and retain customers. If customers are locked into a particular competitor's technology, there may be less rivalry among firms as they have a captive customer base. Therefore, option B correctly identifies a scenario with high rivalry among firms.
Learning Objectives
- Comprehend the impact of market organization on competition between firms and their financial success.