Question 43 A firm can often increase it profitability by: Decreasing production capacity and then striving hard to operate at full capacity. (B) Entering an industry with very low barriers to entry. Erecting switching costs for its buyers. (D) Helping its suppliers to erect switching costs. (E) All of the above. Question 44 If a firm does a poor job of developing its competitive strategy, it may find that it is 'competing on price'. The result of this is usually a dramatic decrease in market share a dramatic increase in differentiation expenditures a dramatic reduction in profits a dramatic reduction in inventory expenses none of the above