Jesse Would Like to Start a Landscaping Company That Concentrates

question 23

Multiple Choice

Jesse would like to start a landscaping company that concentrates on using native plants.The feasibility study showed a need for $100,000 to start the company (she has $10,000) ,competition of three other companies (one concentrated on using native plants) ,and buyers who were predominantly 60 years or older (who loved yard work) .Which statement is true?

• A)This plan shows fatal flaws with financing,competition,and market as none of these flaws could be fixed.
• B)The plan has a fatal flaw with financing and competition as the market might have an interest in her speciality.
• C)The plan has a fatal flaw with financing but competition might not be as much of an issue if the native plant landscaping is growing with the buyers.
• D)The plan could be fixed if an investor went into business with her.

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Definitions:

Monopoly Power

The ability of a single seller or firm to control the market price and output of a good or service, due to lack of competition.

United States

A country located in North America, consisting of 50 states and known for its significant influence on global culture, economy, and politics.

Antitrust Policy

Legislative and regulatory efforts undertaken by the government to prevent oligopolistic industries from becoming or behaving like monopolies.

Monopoly Power

The ability of a business to control market prices and total market output due to the lack of competition.