Joann Is Buying an Existing Convenience Store

question 41

Multiple Choice

Joann is buying an existing convenience store.When she considers which bank to use,her best choice would be:

• A)a national bank that processes credit card payments.
• B)the credit union where she is already a member.
• C)a bank close to her store.
• D)the largest one in her town,which is located on the other side of town from her store.

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Definitions:

Limit Pricing

A strategy used by monopolies or market leaders to set prices low enough to deter new entrants into the market.

New Rivals

refers to competitors that enter a market and challenge existing firms with their products, services, or business models.

Cartel

An association of manufacturers or suppliers with the purpose of maintaining high prices and restricting competition.

Differentiated Product

A product that is distinguished from similar products offered by competitors because of unique characteristics or features.