Competitors Are Most Likely to React to a Price Change

question 61

Multiple Choice

Competitors are most likely to react to a price change when ________.

• A) a large number of competitors are involved
• B) the product is uniform
• C) the buyers are not well informed about product features
• D) buyers are not well informed about price differences
• E) the market has a pure monopoly

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Definitions:

Productivity

The efficiency of production measured by the output per unit of input.

Standard of Living

The measure of fiscal prosperity, convenience, material assets, and critical needs granted to a select socioeconomic layer or specific geographic territory.

Goods and Services

Physical items (goods) and intangible assistance or work (services) provided to satisfy the needs and wants of consumers.

Total Supply of Money

The total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and liquid assets.