At an accelerating growth stage, a firm will not experience...a.high profit marginsb.little competitionc.high sales growthd.high competition
Question
At an accelerating growth stage, a firm will not experience...
- a. high profit margins
- b. little competition
- c. high sales growth
- d. high competition
Solution
To address the question of what a firm will not experience during an accelerating growth stage, let's analyze the options provided.
-
High Profit Margins: In an accelerating growth stage, firms often invest heavily in resources and infrastructure to scale operations, which can temporarily reduce profit margins.
-
Little Competition: As a market grows, it tends to attract more competitors. Therefore, firms are likely to experience increased competition during this phase.
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High Sales Growth: This is characteristic of an accelerating growth stage; firms typically experience high sales growth as they capture market share and expand.
-
High Competition: As mentioned above, the growth stage usually draws in competitors, which increases competition.
Given this analysis, the most accurate answer is:
Final Answer
b. little competition - A firm will not experience little competition during an accelerating growth stage, as growth attracts more competitors.
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