Question

7. Which of the following comprise(s) the competitive environment of a firm?  

a.  The number of competitors present in the market  

b.  The relative size of the competitors

c.  The degree of interdependence within the industry

 d.  All of these

Answer 1

Option d

Competitiveness needs many players with interdependence so the competition will work.

so it would depend on a

.  The number of competitors present in the market  

The higher number of firms the competition is higher and less firm decreases competition

b.  The relative size of the competitors

the power over the price of any competition should be equal to the competition increases otherwise decreases

c.  The degree of interdependence within the industry

the less related product has lower competitions and the almost identical product firms are more competitive