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NEW QUESTION: 1
When does competition not become an even stronger force impacting the profitability of a firm?
A. The costs of exiting the market are less than the costs of continuing to operate.
B. The market is not growing fast.
C. Customers do not have strong brand preferences.
D. Various firms use various types of strategic plans.
Choice "d" is the proper choice, as it is not a factor that would cause market competitiveness to be even
stronger. Choices "a", "b", and "c" are incorrect because they are all reasons that competition becomes an
even stronger force that impacts the firm's profitability. Following are situations that would cause
competition to be an even stronger force impacting the profitability of a firm:
. The market is not growing fast.
. There are several equal-sized firms in the market.
. Customers do not have strong brand preferences.
. The costs of exiting the market exceed the costs of continuing to operate.
. Some firms profit from making certain moves to increase market share.
. The various firms in the market use different types of strategic plans.
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