Car Manufacturers Such as Lamborghini Compete in the Small Super

question 86

Multiple Choice

Car manufacturers such as Lamborghini compete in the small super car category. These cars offer more than just transportation. They are known for their styling and state-of-the-art technology. Which of the following is an advantage for such a company?

• A) It depends on its ability to reduce the price to drive competition out of the market.
• B) It does not face damaging attacks from larger firms.
• C) Its growth is never stymied irrespective of the fact that it serves a niche market.
• D) Its area of operation cannot be made to disappear or be taken over by larger competitors.
• E) It can charge very high prices.

---

Definitions:

Emission Standards

Regulations set by governments to limit the amount of pollutants that can be emitted into the environment by automobiles, factories, and other sources.

Quantity Supplied

The quantity of a product or service that suppliers are ready and capable of offering for sale at a specific price point.

Supply Curve

A graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period.

Technology

The application of scientific knowledge for practical purposes, especially in industry and in the creation of inventions and software.