Which of the Following Statements Concerning the Impact of Competition

question 99

Multiple Choice

Which of the following statements concerning the impact of competition on a small company's prices is true?

• A)When setting prices, a business owner must either match or beat competitors' prices on similar products or services.
• B)Because federal laws prohibit the practice as an unfair trade practice, business owners should not monitor their rivals' prices on identical items.
• C)When going up against larger, more powerful rivals, small firms should consider using nonprice competition as a way to differentiate their products or services rather than head-to-head price competition.
• D)All of the above

---

Definitions:

Xerox Copier

A brand of photocopier machines known for their document copying capabilities, often used generically to refer to photocopying.

Maintenance-Free

Products or systems designed to operate without needing regular maintenance or care from the user.

Misrepresentation

The act of providing false or misleading information with the intent to deceive in a contractual agreement.

Rescission

A legal remedy that cancels or annuls a contract, returning the parties to their positions before the agreement.