1-8 Competition

What does competition refer to in a business context?

• Cooperation between companies.

• The rivalry between companies selling similar products and services.

• A monopoly in the market.

• Government regulation of businesses.

What is direct competition?

• When companies offer different products.

• When companies offer essentially the same product or service.

• When companies collaborate on a product.

• When companies avoid competition.

What is indirect competition?

• When products or services are identical.

• When products or services are not the same but satisfy the same need.

• When companies merge.

• When there is no competition.

What characterizes monopolistic competition?

• A single supplier dominates the market.

• Many suppliers with low barriers to entry, but products are differentiated.

• No competition exists.

• Government controls all suppliers.

What is a monopoly?

• A market with many suppliers.

• A market where one company controls the supply of a good or service.

• A market with no barriers to entry.

• A market with perfect competition.

What is non-price competition?

• Competing based on price alone.

• Competing based on features and attributes other than pricing.

• Competing by lowering quality.

• Competing by increasing production costs.

What is an oligopoly?

• A market with many small companies.

• A market with a small number of companies controlling supply.

• A market with no barriers to entry.

• A market with perfect competition.

What is price competition?

• Using features to attract customers.

• Using pricing to attract customers.

• Using advertising to attract customers.

• Using quality to attract customers.

What is primary data?

• Data collected from secondary sources.

• Data collected from government reports.

• Information collected directly from first-hand experience.

• Information collected from textbooks.

Which of the following is an example of direct competition? Mark all that apply.

• Coke and Pepsi

• Bicycles and cars

• Apple and Microsoft

• Nike and Adidas