Which of the Following Is Not a Factor That Affects

question 53

Multiple Choice

Which of the following is not a factor that affects how a competitor will respond to a competitive attack?

• A) how dependent the competitor is on that industry or particular market segment
• B) the degree of market power and reputation of the company that initiated the attack
• C) the stock market reaction to the initial competitive attack
• D) the resources which are available for a firm to respond

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Definitions:

Efficient Use

The optimization of resources to achieve the highest possible output or benefit with the least amount of input or waste.

P > MC

A situation in which price is greater than marginal cost, indicating potential profit opportunities for firms.

Profits Equal Zero

A situation in which a firm's total revenue is exactly equal to its total costs, resulting in no net profit.

Economies of Scale

Cost efficiencies achieved by organizations through their operational scale, with per unit cost diminishing as the scale of production grows.