Which of the Following Is an Example of a Competitive

question 32

Multiple Choice

Which of the following is an example of a competitive strategy employed by a firm?

• A) increasing the price of its product when raw material prices increase
• B) laying off staff in order to cut down costs during a recession period
• C) advertising its products nationwide like its competitor organizations
• D) launching a unique product targeted at a section of consumers

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Definitions:

Price Discrimination

The practice of selling the same product to different buyers at different prices, often based on market power.

Dominant Firm

A company that has a large share of the market and can influence market conditions and prices.

Clayton Act

a United States antitrust law enacted in 1914, aiming to promote competition and prevent monopolies by addressing specific practices not sufficiently covered by the Sherman Act.

Petrochemical Production

The process of converting natural resources, like crude oil or natural gas, into chemical products used in manufacturing and industry.