Which of the Following Statements About the Competitive Environment Is

question 47

Multiple Choice

Which of the following statements about the competitive environment is TRUE?

• A) In monopolistic competition a seller has a down-sloping demand curve due to the lack of any substitute products.
• B) In pure competition, an individual firm is usually faced with a very inelastic demand curve.
• C) Firms in oligopoly should avoid price cutting.
• D) The industry demand curve in oligopoly is usually horizontal.
• E) All of these statements about the competitive environment are TRUE.

---

Definitions:

Achievement Motivation

A desire for significant accomplishment, for mastery of skills or ideas, for control, and for attaining a high standard.

Affiliation Motivation

A social motivation that drives individuals to want to belong to or be accepted by a group.

Rorschach Test

A psychological test in which subjects' perceptions of inkblots are recorded and analyzed using psychological interpretation.

Meaningless Inkblots

Images without inherent meaning used in psychological tests (e.g., Rorschach test) to explore the underlying thoughts, feelings, and patterns of perception of the individual.