For Firms Like Target and Walmart, Competition

question 86

Multiple Choice

For firms like Target and Walmart, competition

• A)is not a factor that must be considered in a free-market economy.
• B)affects smaller businesses but not large chain operations.
• C)affects larger chain operations but not smaller businesses.
• D)is a rivalry among businesses for sales to potential customers.
• E)is a problem that has been eliminated in the twenty-first century.

---

Definitions:

Buyers' Incomes

The total earnings or revenue of purchasers, which directly impacts their purchasing power and demand for goods and services in the market.

Pure Competition

Market structure, in which large numbers of buyers and sellers exchange homogeneous products and no single participant has a significant influence on price.

Entrepreneurs

Individuals who initiate, manage, and assume the risks of a business venture in order to bring new products or services to the market.