Asked by Jayvion Pitts on Jul 04, 2024
Verified
Rivalry among firms would tend to be high if
A) There is a small number of firms in the market
B) There is a large number of firms in the market
C) There is only one firm in the market
D) None of the above
Market Firms
Organizations that operate in a specific market, engaging in the production, distribution, or trading of goods or services.
Small Number
A numeric value that is considered to be significantly less in magnitude compared to typical or average values.
Large Number
A numeric value that is significantly above average or expected in size or magnitude.
- Acquire insight into how the formation of markets affects rivalry among companies and their earnings.
Verified Answer
ZK
Zybrea KnightJul 05, 2024
Final Answer :
B
Explanation :
Rivalry among firms tends to be high in markets with a large number of firms because each firm must compete aggressively for market share, leading to competitive pricing, marketing strategies, and product innovation.
Learning Objectives
- Acquire insight into how the formation of markets affects rivalry among companies and their earnings.