Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Increased competition in the market will result in which of the following?

Options:

Increase the tax

Increase the profit

Increase the cost of production

Reduce the profit margin

Correct Answer:

Reduce the profit margin

Explanation:

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.