Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) High intensity of competitive rivalry can make an industry more competitive and decrease profit potential for the existing firms. Reason (R) Industry with excess production capacity will have greater rivalry among competitors. Codes

• A. Both A and R are true and R is the correct explanation of A.
• B. Both A and R are true, but R is not the correct explanation of A.
• C. A is true, but R is false.
• D. A is false, but R is true.