Competition Is More Likely to Exist When

question 68

Multiple Choice

Competition is more likely to exist when:

• A)there is free entry into and exit out of industries.
• B)there is a single supplier of all goods and services.
• C)the government purchases most goods and services.
• D)products are produced by a few large firms.

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Definitions:

Everyday Low Pricing

A pricing strategy where companies consistently offer products at low prices rather than relying on sales or discounts.

Retail Pricing Strategy

The approach a retailer uses to price its products or services, aimed at achieving a balance between profit margins and market competitiveness.

Markdowns

Reductions in the selling price of goods, often to clear old stock or during sales promotions.

Original Price

The initial cost set for a product or service before any discounts, promotions, or markdowns are applied.