Final answer:
The stage of the industry life cycle where competition intensifies and can push weaker firms out of the market is called the Shakeout stage (A). This stage occurs after the market becomes saturated and growth rate diminishes, leading to fierce competition for market share and the potential departure of less competitive firms.
Step-by-step explanation:
The stage of the industry life cycle where competition becomes more intense, leading to weaker firms being forced out, is known as the Shakeout stage. During the Shakeout phase, market saturation is typically reached, the growth rate slows down, and firms begin to compete more aggressively for market share. This often results in price wars, increased marketing expenses, and the need for product differentiation.
Weaker firms that cannot withstand the competitive pressure may exit the industry, either by going bankrupt or by substantially contracting their business operations, leading workers to seek other employment opportunities. This competition can be particularly intense in industries that have experienced deregulation, where the barriers to entry and exit are reduced, leading to a dynamic and sometimes turbulent market.