Asked by Kevin Rodrigues on May 20, 2024
Verified
The overall impact of the web is to increase competition which generally diminishes a firm's profitability.
Firm's Profitability
A financial metric indicating the degree to which a company generates profit from its operations.
Overall Impact
The total effect or significance of an event, decision, or action on a system, organization, or community.
Increase Competition
A situation where more competitors enter the market, intensifying the competitive environment.
- Grasp the impact of the web on competition and profitability in various industries.
Verified Answer
JS
Julianne Sol CruzMay 20, 2024
Final Answer :
True
Explanation :
The web increases transparency and reduces information asymmetry, allowing customers to easily compare products and prices, which in turn increases competition among firms. This heightened competition often leads to reduced prices and narrower profit margins for companies.
Learning Objectives
- Grasp the impact of the web on competition and profitability in various industries.