Question

Rivalry tends to be fierce among an industry's competitors if fixed costs in the industry are low. Group of answer choices True False

Answer 1

Answer:FALSE

Explanation:Fixed costs are costs that are not changed by an increase or a decrease in the volume of outputs. Fixed cost are permanent costs that are not dependent on business related factors.

Examples of fixed costs include the Money paid to insure its properties,the Money paid as salaries, Depreciation etc.

Rivalry is a a Competition,when fixed costs are low rivalry is always on the moderate as most companies don't have reduced stress or threat to their business.