Competition Refers to

question 60

Multiple Choice

Competition refers to

• A)identical products that perform identical functions.
• B)any for profit organization that targets the customers of other organizations.
• C)alternative firms that could provide a product to satisfy a specific market's needs.
• D)any product or service that vies for a portion of a customer's discretionary income.
• E)the set of firms that operate in a given geographic region, regardless of product or service

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Definitions:

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or resource, usually to protect consumers.

Price Floor

A government or regulatory minimum price that must be paid for a good or service, intended to prevent prices from falling too low.

Shortage

A market condition where demand exceeds supply.

Surplus

A situation where the quantity of a good or service supplied exceeds the quantity demanded, often resulting in excess stock and potential price reductions.