Rivalry among competing sellers decreases Question 9AnswerA.when buyer demand is growing rapidly.B.as it becomes less costly for buyers to switch brands.C.as the products of rival sellers become commoditized.D.when there is excess production relative to demand.E.as the number of competitors increases.

Factors that weaken rivalry among competing sellers includeMultiple Choicelow buyer switching costs.slow growth in buyer demand.rapid growth in buyer demand, high buyer costs to switch brands, and so many industry rivals that any one company’s actions have little impact on the businesses of its rivals.standardized or else weakly differentiated products among rival sellers.the presence of one or more rivals that are dissatisfied with their current position and market share.

The rivalry among competing sellers tends to be less intense when Question 10AnswerA.industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit sales.B.buyer demand is weak and many sellers have excess capacity and/or inventory.C.industry rivals are not particularly aggressive or active in making fresh moves to improve their market standing and business performance.D.rivals have diverse strategies and objectives and are located in different countries.E.rival sellers have weakly differentiated products.

The rivalry among competing sellers in an industry intensifiesMultiple Choicewhen buyer demand for the product is growing rapidly.when customers are brand loyal and their costs to switch to competing brands or substitute products are relatively high.when buyer demand is strong and sellers have little or no excess capacity and only minimal inventories.as the number of rivals increases and as they become more equal in size and competitive capability.when the products of rival sellers are highly differentiated products and the industry consists of so many rivals that any one company’s actions have little direct impact on rivals’ business.

Which of the following is NOT a factor that causes buyer bargaining power to be stronger?Question 3AnswerA.Some buyers are a threat to integrate backward into the business of sellers and become an important competitor.B.Buyers are small and numerous relative to sellers.C.Buyers have considerable discretion over whether and when they purchase the product.D.Buyers purchase the item frequently and are well-informed about sellers' products, prices, and costs.E.The costs incurred by buyers in switching to competing brands or to substitute products are relatively low.

If a monopolistically competitive seller can convince buyers that its product is of better quality and value than products sold by rival firms, all of the following occur EXCEPT _______________.a.demand increases.b.the firm gains more control over its pricec.demand becomes more inelastic.d.demand becomes perfectly elastic.