Question

When capacity is inadequate, what can happen to market share?

A) It remains constant
B) It increases
C) It shrinks
D) It becomes unpredictable

Answer 1

When capacity is inadequate, market share can shrink.

Step-by-step explanation:

When capacity is inadequate, market share can shrink. In a situation where a company does not have enough capacity to meet demand, it may not be able to produce and deliver enough products to maintain or increase its market share. This can lead to customers choosing alternative products or brands that are readily available, causing the company's market share to shrink.