Which of the Following Statements Is True of Understanding an Industry

question 61

Multiple Choice

Which of the following statements is true of understanding an industry?

• A)If managers do not properly define and understand their industry, they may be vulnerable to unseen competitors.
• B)Truly understanding an industry often begins by taking a product-oriented view.
• C)Firms should avoid choosing to compete in several markets at the same time.
• D)Identifying an industry based on the product or service provided is the best way to understand the industry.

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Definitions:

Price Ceiling

A government-imposed limit on how high a price is charged for a product, meant to protect consumers from conditions that could make commodities prohibitively expensive.

Shortage

A market condition where the demand for a product exceeds its supply at a particular price.

Surplus

is a situation in which the quantity of a good or service available exceeds the quantity demanded at the current price.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service, intended to protect consumers.