Which of the Following Is True of Competition in Product-Markets

question 61

Multiple Choice

Which of the following is true of competition in product-markets?

• A) The cost of labor does not affect the product market as it is an insignificant part of an organization's costs.
• B) Product-market considerations are of particular concern to a company when its customers place greater importance on product rather than price.
• C) Organizations in a product market are competing to serve the same customers.
• D) Product markets place a lower limit on the pay an organization will offer its employees.
• E) Organizations must increase the cost of labor every quarter.

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Definitions:

Savers

Individuals or entities that set aside a portion of current income for future use, often by depositing money in savings accounts or investing in securities.

Inflation Rate

The speed at which the overall price level of goods and services increases, leading to a decrease in purchasing power.

Nominal Interest Rate

The interest rate expressed in terms of annual amounts currently charged for interest and not adjusted for inflation.

Real Interest Rate

The interest rate expressed in dollars of constant value (adjusted for inflation) and equal to the nominal interest rate minus the expected rate of inflation.