Question

Which of the following tends tends to reduce the intensity of rivalry?

	a.	Similarity of firms in terms of size, market influence, and product offerings
	b.	Products are big ticket items and purchased infrequently
	c.	New capacity can be added in small increments
	d.	Slow industry growth or decline in demand

Answer 1

Rivalry is a condition or situation when a company tries to to get ahead of other competitors in the market by hook or crook

Tgeye create an edge over others by unique selling price, market influence, advertisements, product offerings etc.

But if all these are lowered then Rival situation in the market can also lowered which can be seen in the perfect market competition

It does not mean that the products can always be big ticket items

If there is a slow industry growth or if there is decline in demand then the whole market get suffered and sales goes down

Rivarly still be there in this case.

Hence option D is true