(a) As rivalry among competing firm intensifies, generally industry profits decline or in few cases, industry becomes inherently unattractive.

(b) Whenever new firms are allowed to enter a particular industry, the intensity of competitiveness among firms becomes haphazard.

(c) Generally competitive pressures arising from the substitute products decrease as the relative price of substitute products decline.

(d) Bargaining power of suppliers affects the intensity of competition.

  • A

    Statements (a) and (b) are false, others are true.


  • B

    Statements (a) and (d) are true, others are false. 

  • C

    Statements (b), (c) and (d) are true, but (a) is false.


  • D

    All the statements are true.