In General, Compared with Firms Which Compete in Only One

question 79

Multiple Choice

In general, compared with firms which compete in only one market, among firms which face one another in multiple markets there is:

• A) similar competitive rivalry.
• B) less competitive rivalry.
• C) more competitive rivalry.
• D) no competitive rivalry.

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Definitions:

GIC

A Guaranteed Investment Certificate (GIC) is a Canadian investment that offers a guaranteed rate of return over a fixed period of time, typically issued by banks or trust companies.

Maturity Value

The amount payable to the investor at the end of a security's maturity period; this includes the principal plus interest.

Treasury Bill

Short-term government securities issued at a discount from the face value and mature in a year or less, representing a secure investment.

Simple Interest

Interest calculated only on the principal amount, or the initial sum of money invested or loaned.