Which of the Following Statements Is True of the Competitive

question 40

Multiple Choice

Which of the following statements is true of the competitive environment in the United States?

• A)Population growth in the United States decreases global competition.
• B)Technology advances can change a firm's business model.
• C)Rise of product costs makes resources readily available.
• D)A management has full control over the competitive environment.

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Definitions:

Scrap Value

The estimated resale value of an asset after its useful life is over and it is deemed to no longer be usable for its intended purpose.

Contribution Margin

The difference between sales revenue and variable costs of a product, indicating how much contributes towards covering fixed costs and earning profit.

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent, salaries, and insurance.

Marginal Costs

The additional cost incurred from producing one additional unit of a product or service.