Answer: A. True
Explanation: The degree of competitiveness plays a significant role in determining a firm's performance largely because it drives innovation, motivation and creativity which optimizes processes such as production and customer service thereby leading to the production of high quality outputs and/or a reduction in prices. In both cases, their customer base are rewarded with desirable products and value for their money.
More customers equates to increased market share, and longer staying power (safety) in the long term.