The level of industry demand:
A)has little effect on competition in the industry.
B)is one of the determinants of the intensity of rivalry in the industry.
C)increases when customers exit a marketplace.
D)does not impact the market share that established companies hold.
E)decreases the rivalry among established companies, when in decline.

Question

The level of industry demand:
A)has little effect on competition in the industry.
B)is one of the determinants of the intensity of rivalry in the industry.
C)increases when customers exit a marketplace.
D)does not impact the market share that established companies hold. 
E)decreases the rivalry among established companies, when in decline.

Quizplus · Accepted Answer

The level of industry demand is one of the determinants of the intensity of rivalry in the industry. When demand is high, there is often more competition among firms to meet the needs of customers. Conversely, when demand is low, firms may compete more fiercely for a smaller market share.

The Level of Industry Demand