Which of the Following Is an Example of a Competitive

question 6

Multiple Choice

Which of the following is an example of a competitive strategy employed by a firm?

• A)increasing the price of its product when raw material prices increase
• B)launching a unique product targeted at a section of consumers
• C)laying off staff in order to cut down costs during a recession period
• D)advertising its products nationwide like its competitor organisations

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Definitions:

Current Demand

The existing desire or need for products or services in the market at a specific point in time.

Price Expectation

Anticipations about future prices that can influence the current decisions of consumers and producers.

Surplus

A market condition where the quantity supplied exceeds the quantity demanded at a given price, often leading to downward pressure on prices.