Generally, Entrepreneurs Should Avoid Head-To-Head Price Competition with Other Firms

question 89

Multiple Choice

Generally, entrepreneurs should avoid head-to-head price competition with other firms that can more easily achieve lower prices through ________.

• A)offering lower value products and services
• B)a better designed Web site
• C)geographic advantages
• D)lower cost structures

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Definitions:

Unemployment

The condition wherein people who are able and willing to work and are actively looking for work cannot secure a job.

Contractionary Monetary Policy

A monetary policy strategy used by central banks to reduce inflation and cool an overheated economy by raising interest rates or increasing reserve requirements.

Inflation

The frequency at which the all-encompassing costs of goods and services heighten, eroding financial purchasing capability.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for work.