Microsoft, Sony, and Nintendo Are the Three Principal Firms in the Video

question 209

Multiple Choice

Microsoft, Sony, and Nintendo are the three principal firms in the video game console market. How much price competition is likely for video game makers?

• A) There is almost none; the market sets the price.
• B) There is vigorous competition and common price wars to drive small competitors out.
• C) There is generally a price leader that sets the price.
• D) Each firm is aware of each other's prices and may adjust prices accordingly.
• E) Price is set by the seller but regulated by the government.

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Definitions:

Payments

Transactions made by individuals or entities to fulfill financial obligations, such as bills, salaries, or loans.

Operating Activities

Activities that are directly related to the day-to-day operations of a business, such as sales, purchase of inventory, and payment of expenses.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue; often referred to as the bottom line.

Transactions

Business activities or exchanges that affect the financial position of a company, involving the transfer of goods, services, money, or titles.