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
