CUET Preparation Today
Increased competition in the market will result in which of the following? |
Increase the tax Increase the profit Increase the communication Reduce the profit margin |
Reduce the profit margin |
The correct answer is option 4- Reduce the profit margin. Increased competition in the market may reduce profit margins of firms. With the increase in competition, many new companies will enter in the market due to which many customers will shift to others, by which profit margin will reduce. |
