Price Competition Intensifies with Each of the Following Except

question 75

Multiple Choice

Price competition intensifies with each of the following except:

• A)increased number of competitors
• B)switching costs are high
• C)wider distribution of competitors
• D)increased surplus capacity in the industry
• E)wider distribution of substitute offers

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Definitions:

Cash Inflows

Cash Inflows are the money or cash received by a business from its various activities, including sales, investments, financing, etc.

Profitability Index

A capital budgeting tool that measures the ratio of the present value of future cash flows generated by an investment to the initial investment cost, used to assess the profitability.

Required Rate Of Return

The minimum expected return on an investment necessary for an investor to consider it worthwhile.

Required Return

The expected yield that an investor anticipates receiving on an investment, taking into account the risk associated with it.