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Which is a crucial question about markets in a macro sense? Select one: a. Is the...

Which is a crucial question about markets in a macro sense? Select one: a. Is the market large enough today to support a variety of competitors? b. What is the predicted short- and long-term growth rate? c. How many customers are in my specific niche or segment? d. Both A and B

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Answer #1

The correct option is

b. What is the predicted short- and long-term growth rate?

When the company analyzes the potential of the market of the respective industry then it has to be analyzed that what would be the predicted short- and long-term growth rate? If there is potential for growth in short as well as long run then the company can utilize the opportunity. Otherwise if the market is saturated and there is no long term growth opportunity then there is no benefit of investing in that industry.

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