Question 11 Rivalry tends to be higher when: when production capacity can be added in small increments there are few firms in an industry and these firms tend to be unequal in size. the industry growth rate is higher. firms are unable to differentiate their products. Question 12 One limitation of accounting measures is that it: does not consider cost of sales does not consider the cost of capital does not consider the economies of scale does not consider the cost of assets 0.3 pts 0.3 pts