Which of the Following Is Necessary for the Presence of Competition

question 207

Multiple Choice

Which of the following is necessary for the presence of competition in a market?

• A) Government regulations that assure firms will make excess profits.
• B) Suppliers that offer a homogeneous product.
• C) A price that always equals per-unit production costs.
• D) Low barriers to entry into the market.

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Definitions:

Stars

In a business context, this term usually relates to products or business units with high market share in fast-growing markets. In astronomy, stars are celestial bodies that emit light and heat from nuclear reactions.

Upside Potential

The potential or likelihood for an investment, asset, or a business to increase in value or performance in the future.

Expanding Markets

The process of entering new geographic or demographic market segments to increase customer base and achieve higher sales.

Moderate Market Share

Refers to a company holding a fair but not dominating percentage of sales in its industry.