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For each category, indicate which condition is associated with higher rivalry among competitors

Economics Nov 12, 2020

For each category, indicate which condition is associated with higher rivalry among competitors.

Number of firms High Low
Fixed costs High Low
Level of product differentiation High Low
Industry growth High Low
Buyer switching costs High Low

Expert Solution

High rivalry among competitors would be found in the following conditions:

  • Number of firms - High
  • Fixed cost - High
  • Level of product differentiation - low
  • Industry growth rate - low
  • Buyer switching cost-low
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