The Larger the Resources of a Firm Taking a Competitive

question 46

Multiple Choice

The larger the resources of a firm taking a competitive action compared with the resources of the other firms in the industry, the ____ the response will be of these other firms.

• A) more fragmented
• B) slower
• C) larger
• D) more tactical

---

Definitions:

Price Elasticity of Demand

A measure of the sensitivity of quantity demanded to a change in price, indicating how much the quantity demanded of a good will change when its price changes.

Market Power

The ability of a company or group of companies to manipulate or control prices and total market output.

Oligopolistic

Pertaining to a market structure characterized by a small number of firms whose actions and policies can significantly impact the entire market.

Perfect Competition

A market structure characterized by many buyers and sellers, homogeneous products, free entry and exit, and full information.