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Consider the following information. An industry has five firms, each with fairly similar revenue, access to financial resources, comparable production capabilities, fairly high fixed costs,
Consider the following information. An industry has five firms, each with fairly similar revenue, access to financial resources, comparable production capabilities, fairly high fixed costs, and aggressive goals to increase market share. The industry has a relatively stable customer base (number of customers and customer demand). Would these firms be more likely or less likely to compete on the basis of price? Would industry profitability (profit margins) be relatively high or relatively low?
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