Question

Factors that weaken rivalry among competing sellers include

a) Low buyer switching costs.

b) Slow growth in buyer demand.

c) 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.

d) Standardized or else weakly differentiated products among rival sellers.

Answer 1

Factors that weaken rivalry among competing sellers include low buyer switching costs, rapid growth in buyer demand with high buyer costs to switch brands, and standardized or weakly differentiated products among rival sellers.

Step-by-step explanation:

Factors that weaken rivalry among competing sellers include:

1. Low buyer switching costs: When the cost for a buyer to switch from one seller to another is low, it reduces the intensity of rivalry among sellers. For example, if it is easy and inexpensive for a customer to switch from one mobile phone brand to another, it weakens the competition among sellers.
2. 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: When there is a high demand for a product and a large number of sellers, it reduces the impact of any single seller's actions on its rivals. Additionally, if the cost for buyers to switch brands is high, it also weakens rivalry among sellers.
3. Standardized or else weakly differentiated products among rival sellers: When the products offered by rival sellers are similar or weakly differentiated, it reduces competition and rivalry among them. For example, if multiple companies offer identical generic products, there is less incentive for intense competition.