As an industry becomes hypercompetitive,firms initially respond by
A) raising entry barriers.
B) moving into untapped markets.
C) attacking the strongholds of other firms.
D) competing on cost and quality.
E) working their way to a situation of perfect competition.

Question

Quizplus · Accepted Answer

When an industry becomes hypercompetitive, firms often compete on cost and quality in order to differentiate themselves from their rivals. This is because it becomes increasingly difficult to maintain market share based solely on other factors like location or product features. By offering better value for money, firms can attract customers and gain an edge over their competitors.

As an Industry Becomes Hypercompetitive,firms Initially Respond by