Asked by Darrell Hardy on Sep 24, 2024
Verified
Rivalry among firms would tend to be high if
A) Firms are located further from each other
B) Firms are located close to one another
C) There is only one firm in the market
D) None of the above
Rivalry Among Firms
The competition between businesses in the same industry to gain increased revenue, market share, and customer loyalty.
Located Close
The condition or state of being situated near a specific point of interest or within a short distance of a particular location.
Single Firm
A business or company that operates independently without affiliations to parent or subsidiary entities.
- Learn the effect market configuration has on interfirm competition and profit margins.
Verified Answer
IA
Imran Ahmed3 days ago
Final Answer :
B
Explanation :
When firms are located close to one another, they may compete for the same customers, suppliers, and resources, leading to a higher level of rivalry. Proximity increases the visibility of rival activities, intensifying the competition among firms.
Learning Objectives
- Learn the effect market configuration has on interfirm competition and profit margins.