In Which of the Following Situations Would Use of the Competitive

question 195

Multiple Choice

In which of the following situations would use of the competitive parity budget-setting method be most appropriate?

• A)Two or more companies are competing with similar products and similar promotional goals.
• B)Two or more companies are introducing a totally new product to the market.
• C)Two or more companies exist in an oligopoly, and are planning on a product diversification strategy.
• D)Two or more companies exist in pure competition and compete on the basis of product differentiation.

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Definitions:

Utility

The total satisfaction or benefit derived by consumers from consuming a good or service.

Rights

Entitlements or permissions, either legal, social, or moral, that individuals are given based on societal norms or legal systems.

Justice

The principle of fairness and the equitable treatment of individuals, as well as the administration of laws and policies.

Ethical Decisions

Choices made based on moral principles and values, considering the impact on stakeholders and society as a whole.