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Choose the Word or Phrase in [ ] Which Will

question 117

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-People share losses through [loss control | insurance].


Definitions:

Competitive Industry

Competitive industries are characterized by three factors: (1) firms produce a product or service with very close substitutes meaning demand is very elastic, (2) firms have many rivals and no cost advantage over those rivals, and (3) the industry has no barriers to entry or exit.

Market Demand

The total volume of goods or services that consumers in a specific market are willing and able to purchase at different price levels.

Market Equilibrium

A state in which market supply and demand balance each other, and, as a result, prices become stable.

Competitive Industry

A sector characterized by many participants striving to offer better products or services than their rivals.

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