Under which of the following conditions will companies with low market share be most likely to fail?
A) competing in an industry requiring market power and economies of scale
B) competing in a slow-growth industry
C) competing in an industry with few product changes
D) competing in an industry that makes frequently purchased items

Question

Quizplus · Accepted Answer

Companies with low market share will struggle to compete in industries that require market power and economies of scale. These industries typically have high barriers to entry, and companies with low market share may not have the resources to keep up with their larger competitors. In contrast, slow-growth industries (B), industries with few product changes (C), and industries that make frequently purchased items (D) may offer more opportunities for smaller companies to succeed.

Under Which of the Following Conditions Will Companies with Low