Why Is Fair Competition Important in the Private Enterprise System

question 35

Multiple Choice

Why is fair competition important in the private enterprise system?

• A) Fair competition allows firms to compete in the marketplace, knowing that they won't be subjected to excessively aggressive practices that are designed to eliminate them.
• B) Fair competition requires that firms inform their competitors when prices will be reduced so that consumers will receive the lowest possible price.
• C) Fair competition supports the goal of private property ownership.
• D) Fair competition allows employees to choose their own employment, negotiate wages, and join labour unions.

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Definitions:

Hybrid Strategy

A hybrid strategy in business combines cost leadership and differentiation approaches to provide value to customers while maintaining competitive pricing.

Fundamental Analysis

An approach to evaluating investments by analyzing the financial health, business model, and economic factors affecting an entity to estimate its intrinsic value.

Technical Analysis

Research to identify mispriced securities that focuses on recurrent and predictable stock price patterns and on proxies for buy or sell pressure in the market.