Scenario 3.2 Use the Following to Answer the Questions

question 105

Multiple Choice

Scenario 3.2
Use the following to answer the questions.
Clayton Homes,a mobile home manufacturer since 1934,introduced its new iHome in 2009.The iHome is one of the first of its kind,designed as an updated,modern version of the modular home,offered as a base home plus add-ons known as "pods." The base home is a one-bedroom,one-bath 734-square foot version at a price of around $80,000.There is also a 1,000 square-foot version for around $100,000.All versions may add on the additional one-room pods as desired which are shipped to your location and constructed on-site.The homes offer galvanized metal roofing,corrugated steel siding,VOC-free paints,and a "butterfly" roof that collects rainwater.The iHome uses 30% less energy than a similar square-foot home and offers "green" characteristics of solar panels,tankless water heaters,and low-flow faucets.In addition,it comes with bamboo flooring,a renewable resource.The modular,pre-fabricated design offers endless options for creating the customer's home and its engineered building system cuts down on construction waste.Due to the "green effects" of the iHome,the state governments have given it a tax abatement for any sales taxes.
-Refer to Scenario 3.2.In what type of competitive structure is Clayton Homes most likely operating?

• A)Monopoly
• B)Oligopoly
• C)Monopolistic competition
• D)Perfect competition
• E)Monopsony

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Definitions:

Specific Situations

Particular or distinct scenarios, conditions, or cases that are clearly identified or defined.

Ability

The possession of the means or skill to do something.

Sarcoplasmic Reticulum

A specialized type of smooth endoplasmic reticulum found in muscle cells, involved in the regulation of calcium ions.

Sarcoplasm

The cytoplasm within a muscle cell, containing organelles, proteins, and the substances required for muscle contraction.