Firms often remain in a low-growth industry in which efforts to increase sales c

Question

Firms often remain in a low-growth industry in which efforts to increase sales cost more than they are worth if the industry: A.Has low profits B. Has high exit barriers C.Has high entry barriers D.Has dynamic equilibrium E.Is unsegmented Firms often remain in a low-growth industry in which efforts to increase sales cost more than they are worth if the industry: A.Has low profits B. Has high exit barriers C.Has high entry barriers D.Has dynamic equilibrium E.Is unsegmented Firms often remain in a low-growth industry in which efforts to increase sales cost more than they are worth if the industry: A.Has low profits B. Has high exit barriers C.Has high entry barriers D.Has dynamic equilibrium E.Is unsegmented

Explanation / Answer

D. Has dynamic equilibrium

if the industry has dynamic equilibrium, then growth remains low and increasing the sales would require capturing the market share of competitors. in a state of dynamic equilibrium, the company would need to use strategies such as differentiation or cost leadership, both will cost more than incremental sales.

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