A Competitive Market with Flexible Prices and Many Buyers and Sellers

question 176

Multiple Choice

A competitive market with flexible prices and many buyers and sellers will:

• A) tend to create surpluses.
• B) tend to create shortages.
• C) reach an equilibrium where the market clears.
• D) reach and equilibrium only if a government agency sets the price.

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Definitions:

Global Environment

The international context within which organizations operate, influenced by economic, social, technological, and political factors across borders.

Divisional Structure

A structure that organizes a company by units according to the products they make, the customer segments they serve, or the geographic location in which they operate.

Functional Structure

A structure that organizes a company into units identified by their functional roles, or what they do.

Meganational Companies

Companies that operate on a global scale, extending their products, operations, and marketing strategies across multiple countries.