When Honda Experienced Declining Sales as a Result of Quality

question 166

Multiple Choice

When Honda experienced declining sales as a result of quality and safety issues,it began offering buyer incentives to new-car buyers.Nearly immediately,Ford and General Motors began similar promotions.These businesses

• A) represent an oligopoly in which there are few sellers,and each seller has considerable control over price.
• B) represent a monopoly in which only one firm supplies a product or products.
• C) are engaging in monopolistic competition in which there are many buyers as well as a relatively large number of sellers that differentiate their products from those of competitors.
• D) are engaging in pure competition,in which no single seller is powerful enough to affect prices.
• E) are engaging in monopolistic competition,in which the products are very similar.

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Definitions:

Business Operation

The day-to-day activities and tasks necessary for a company to function and achieve its business objectives.

Life Cycle

Describes the series of phases that a product, organization, or system goes through from initial conception to its eventual decline.

Entrepreneurial Firms

Companies that engage in significant innovations, undertake considerable risk, and aggressively pursue opportunities, typically in a quest to grow.

Management Competencies

The skills, knowledge, and abilities required by managers to effectively perform their roles within an organization.