An Ideal Competitive Environment from a Profit-Making Standpoint Is When

question 72

Multiple Choice

An ideal competitive environment from a profit-making standpoint is when:

• A) Rivalry is moderate, and high entry barriers and good substitutes do not exist.
• B) Rivalry is high, entry barriers are low, and there are many substitutes.
• C) Rivalry is high, buyers and sellers have strong bargaining power, and entry barriers are low.
• D) Rivalry is moderate, entry and exit barriers are low, and there are many substitutes.

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Definitions:

Rescind Agreement

To revoke, cancel, or annul an agreement, legally undoing its terms and obligations.

Remedies Available

Legal means for enforcing a right or redressing a wrong provided and sanctioned by law, including compensation, restitution, or injunctions.

Breach of Warranty

A legal term referring to the failure to fulfill the terms of a promise or guarantee made in a warranty.

Seller's Promise

A commitment by the seller to the buyer that certain conditions, such as the quality or delivery of a product, will be fulfilled.