USA HISTORY

Detailed explanation-1: -A price war occurs when two or more rival companies lower the prices of their products or services with the goal of stealing customers from their competitors or gaining market share.

Detailed explanation-2: -What is Competitive Rivalry? Competitive rivalry is a measure of the extent of competition among existing firms. Intense rivalry can limit profits and lead to competitive moves, including price cutting, increased advertising expenditures, or spending on service/product improvements and innovation.

Detailed explanation-3: -Rivalry among sellers In the simplest form of oligopolistic industry, sellers are few, and every seller supplies a sufficiently large share of the market so that any feasible and modest change in his policies will appreciably affect the market shares of all his rival sellers, inducing them to react or respond.

Detailed explanation-4: -Definition: Direct competition is when two or more businesses offer the same product or service and compete for the same market. There are many common examples of this.

Detailed explanation-5: -The intensity of rivalry will be high if industry growth is slow. If the industry’s fixed costs are high, then competitive rivalry will be intense. Additionally, rivalry will be intense if the industry’s products are undifferentiated or are commodities.