MGT30005. Week 4

In a perfectly competitive market, firms:

• Have significant control over prices

• Face high barriers to entry

• Must accept the market price

• Differentiate their products through branding

Which of the following industries best represents an example of monopolistic competition?

• Electricity supply

• Fast-food chains

• Wheat farming

• Telecommunications

The key characteristic of an oligopoly is:

• No barriers to entry

• Homogeneous products

• Interdependence among firms

• A single dominant supplier

During the Growth stage of the Product Life Cycle, companies should focus on:

• Educating the market and creating awareness

• Reducing production costs and finding niche markets

• Expanding distribution channels and differentiating products

• Defending market share and maintaining customer loyalty

What is the primary strategic challenge in the Decline stage of the Product Life Cycle?

• Building awareness

• Sustaining profits and staying relevant

• Expanding product lines

• Competing with new entrants

What strategic approach can firms use to maintain monopoly-like conditions?

• Lowering prices aggressively

• Building barriers to entry

• Ignoring competition

• Reducing advertising efforts

Which of the following best describes the characteristics of monopolies?

• Many firms, identical products

• A few dominant firms, high interdependence

• A single firm with significant control over prices

• Differentiated products and low barriers to entry

In which stage of the Product Life Cycle is competition the highest, and market saturation is a major challenge?

• Introduction

• Growth

• Maturity

• Decline

Which of the following strategies is most appropriate during the Introduction stage of the Product Life Cycle?

• Cost-cutting and market segmentation

• Aggressive promotion and customer education

• Diversification into new markets

• Product standardization and cost leadership