Firms Do Not Compete Only Against Global Competitors, but Against

question 79

Multiple Choice

Firms do not compete only against global competitors, but against:

• A)their suppliers.
• B)themselves.
• C)the customers of their competitors.
• D)their competitors' supply chains.

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Definitions:

Supply

represents the total amount of a product or service that is available for purchase at any given price in a market.

Price Change

Price change refers to the variation in the cost of goods and services over time.

Equilibrium Price

The price in a competitive market at which the quantity demanded and the quantity supplied are equal, there is neither a shortage nor a surplus, and there is no tendency for price to rise or fall.

Relatively Inelastic

Describes a situation where the demand for a good or service changes by a smaller percentage than changes in its price, indicating consumers' less sensitive response to price changes.