All things being equal, If other bakeries decided to enter the specialty wedding-cake market, rivalry would increase. If 20% more people were planning to get married this spring, specialty bakeries would likely save money by using cheaper ingredients. If fewer people were getting married, these bakeries would need to compete more to attract customers. If 20% more people were planning to get married this spring, specialty bakeries might raise their prices. If one bakery offered very different products for the others, they would experience less rivalry.

How strong would rivalry be between five bakeries that specialize in creating exclusive wedding-cakes?

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