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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
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Solution

To address the question of what a firm will not experience during an accelerating growth stage, let's analyze the options provided.

  1. 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.

  2. Little Competition: As a market grows, it tends to attract more competitors. Therefore, firms are likely to experience increased competition during this phase.

  3. High Sales Growth: This is characteristic of an accelerating growth stage; firms typically experience high sales growth as they capture market share and expand.

  4. 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.

This problem has been solved

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