Intro to Business: Competition

Most businesses put their greatest competitive efforts into competing _______(

with direct competitors

Which of the following is one of the main principles of the private enterprise system?

competition

Burger King and McDonald's are examples of

direct competitiors

One way that competition benefits business is by encouraging the creation of _______.

new companies

What motivates business to produce efficiently and sell effectively?

the hope of making a profit

Which of the following statements about perfect competition is correct:

there are few to no barriers of entry

Which of the following is a direct benefit to consumers of the effects of competition?

wider product selection

Which of the following pieces of legislation prevents monopolies from forming and hinders price fixing?

sherman antitrust

Because of competition, people in our society enjoy _______.

a higher standard of living than that of people in many other countries

In many places, trash pickup is legally controlled by just one company. This is known as _______.

a regulated monopoly

One way that competition helps to build a prosperous society is by _______.

creating new jobs

Which of the following are qualities of monopolies?

high prices and low production

One of the ways that competition benefits customers is by encouraging businesses to _______.

improve their existing products

If a consumer chooses to go to the movies rather than to a pizza parlor, then the movie theater and the pizza parlor are _______

indirect competitors

What type of market structure is MOST commonly found in a private enterprise economy?

monopolistic competition

Offering high quality, large assortments, and free shipping are examples of _______

nonprice competition

When Maura purchased a new car, she was able to get part of the purchase price back from the car's manufacturer. The car's manufacturer engaged in _______

offering rebates

The automobile industry, the pharmaceutical industry, and the airline industry are all examples of _______.

oligopolies

An electronics store charges less for a new television than other electronics stores. The store is engaging in _______ competition.

price

A business that advertises a special sale as well as its delivery service is using a combination of _______ competition.

price and nonprice