Competitive behaviour and competitive market structure are _______ related.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. inversely.
Competitive behavior and competitive market structure are inversely related; as market structure becomes more competitive, the intensity of competitive behavior tends to decrease. In a highly competitive market structure (like perfect competition), firms are price takers, and there's little room for aggressive competitive behavior. Conversely, in less competitive structures (like monopoly or oligopoly), firms may engage in more aggressive strategies to gain market share.