What Idea Is Best Illustrated by the Example of Alamo

question 25

Multiple Choice

What idea is best illustrated by the example of Alamo auto rentals offering unlimited mileage to drivers and the practice being adopted by other auto rental firms?

• A) start-ups
• B) diffusion
• C) invention
• D) fast-second strategy

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Definitions:

Oligopolies

Market structures in which a few companies dominate the industry, limiting competition and potentially leading to higher prices for consumers.

Collusion

A secret or illegal cooperation between parties, typically to cheat or deceive others, often seen in contexts like business practices or trade.

Market Share

The percentage of total sales volume in a market captured by a brand, product, or company.

Herfindahl-Hirschman Index

A measure of market concentration used to determine the level of competition within an industry, calculated by squaring the market share of each firm within the industry.