What Do Sony, Microsoft, and Nintendo Have in Common

question 3

Multiple Choice

What do Sony, Microsoft, and Nintendo have in common?

• A) Each achieved a dominant position in its industry because it owned a key input in the production of its product.
• B) The industry in which each firm competes is an oligopoly because of government-imposed barriers to entry.
• C) Each company was founded in the same state.
• D) The profitability of each firm depends on its interactions with other firms.

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Definitions:

Magnuson-Moss Act

A federal law aimed at protecting consumers from deceptive warranty practices.

Industry-Wide Safety Standards

Norms and regulations designed to ensure safe practices across an entire industry, often developed by consensus among industry members or mandated by governmental agencies.

CPSC

The Consumer Product Safety Commission (CPSC) is a U.S. government agency responsible for protecting the public from unreasonable risks of injury or death associated with consumer products.

Consumer Financial Protection Bureau

A U.S. government agency tasked with ensuring that consumers are treated fairly by banks, lenders, and other financial companies.