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QUESTION:

Multiple Choice Question

During the shakeout stage of the industry life cycle, profits degrade for Blank.

Multiple choice question.

ANSWER:

Your Answer correct

During the shakeout stage of the industry life cycle, profits degrade for Blank.

Multiple choice question.
Reason: 

Only the strongest competitors survive increasing rivalry as firms begin to cut prices and offer more services, all in an attempt to gain more of a market that grows slowly, it at all. This type of cut-throat competition erodes profitability of all but the most efficient firms in the industry. As a consequence, the industry often consolidates, as ALL the weakest competitors either are acquired by stronger firms or exit through bankruptcy.

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