The Trade Practices Tribunal Described a Market as Having Five

question 20

Multiple Choice

The Trade Practices Tribunal described a market as having five different dimensions that it will consider when determining whether or not that market is competitive.It identified one of these dimensions as being the most crucial.Which is it?

• A)The number and size distribution of different sellers and the degree of market concentration.
• B)Barriers to entry (i.e.the ease with which new businesses can enter and secure a valuable part of the market).
• C)The existence of extreme product differentiation and promotion.
• D)The character of vertical relationships with consumers and suppliers.

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Definitions:

Revenue Variance

The difference between the actual revenue earned by a business and its expected (or budgeted) revenue, which can be favorable or unfavorable.

Sales Revenue

The income received by a company from its sales of goods or the provision of services before any expenses are deducted.

Actual Level

The real, observed state or value of a variable or metric at a given point in time, opposed to theoretical or planned levels.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.