If a Business Has a Substantial Degree of Power in the Market

question 43

Multiple Choice

If a business has a substantial degree of power in the market, it may, without contravening the provisions of the Competition and Consumer Act 2010 (Cth) :

• A)Eliminate or damage a competitor.
• B)Prevent the entry of a person into that or another market.
• C)Engage in competitive rivalry.
• D)Deter or prevent a person from engaging in competitive conduct in that or another market.

---

Definitions:

Inbound Logistics

The activities related to receiving, storing, and distributing inputs internally needed for production.

Product Life Cycle

The stages through which a product goes from its introduction to the market, growth, maturity, and eventually decline.

Network Effects

The phenomenon whereby a service becomes more valuable as more people use it, thereby encouraging even more users to join.

Capital Requirements

The total amount of capital needed for a business to carry out its operations, including costs for assets, staffing, and day-to-day expenses.