​The Interactive Exchange Between Firms and Their Customers Creates the Competitive

question 150

Multiple Choice

​The interactive exchange between firms and their customers creates the competitive environment.There are multiple types of competitive environments,and each has its own characteristics.Your company operates in a competitive environment where there are only a limited number of competitors.Moreover,it is hard for new competitors to enter the industry because of the high startup costs involved. Which one of the following competitive environments best describes the industry your company is in?

• A)​Monopolistic competition
• B)​Monopoly
• C)​Oligopoly
• D)​Perfect competition
• E)​Socialism

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Definitions:

Required Rate

The minimum acceptable return on an investment, often used in capital budgeting to assess the viability of potential investments or projects.

Paid Dividend

The cash or stock distributed to shareholders from a company's earnings.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with guaranteed dividends, but without voting rights.

Par

A term that refers to a financial instrument trading at its face or nominal value.