Question

In which one of the following instances is rivalry among competing sellers notmore intense?

A. When certain competitors are dissatisfied with their market position and make moves to bolster their standing
B. When strong companies outside the industry acquire weak firms in the industry and launch aggressive moves to transform their newly-acquired competitors into stronger market contenders
C. When competitors are fairly equal in size and capability
D. When the products of rivals are weakly differentiated, buyer switching costs are low and market demand is growing slowly
E.When there are so many industry rivals that the impact of any one company's actions is spread thinly across all industrymembers

Answer 1

Answer: E.When there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members

Explanation:

The more the number of players in an industry the more it gets congested and especially for the competing sellers. The decision for increasing or reducing price is met by follower firms to do the same thing. It gets less competitive because you know all the players in the industry would be following the same practices and doing the same thing.