Question 1

Paul Avery is a salesperson at the only Ford automobile dealership in Wausau, Wisconsin. However, there are several other auto dealerships in town, offering both domestic and foreign cars and trucks. Paul works hard to keep his customers satisfied because he knows that if his customers are unhappy, they can simply buy a car from one of the several other comparable dealers in Wausau. This marketing environment is an example of
A) pure competition.
B) monopolistic competition.
C) an oligopoly.
D) a monopoly.
E) marginal competition.

Accepted Answer

The fact that there are several other auto dealerships in town offering both domestic and foreign cars and trucks indicates that it is a monopolistic competition environment. In this type of environment, there are many competitors offering products that are similar but not identical, giving consumers options and the ability to choose between different brands or models. As a result, businesses must work hard to differentiate themselves and keep customers satisfied in order to remain competitive.

Question 2

In marketing, the form of competition that occurs when only one firm sells the product is referred to as
A) pure competition.
B) a megopoly.
C) an oligopoly.
D) monopolistic competition.
E) a pure monopoly.

Accepted Answer

The form of competition in which only one firm sells the product is known as a pure monopoly. This means that the firm has complete control over the price and supply of the product in the market. Other forms of competition listed - pure competition, monopolistic competition, oligopoly, and megopoly - involve multiple firms competing with each other in different ways.

Question 3

AT&T, Verizon, Sprint, and T-Mobile serve more than 95 percent of the subscribers in the U.S. wireless mobile phone market. Which form of competition characterizes this market?
A) pure competition
B) limited competition
C) a monopoly
D) an oligopoly
E) monopolistic competition

Accepted Answer

An oligopoly is characterized by a few large firms dominating the market, which is exactly what is happening in the U.S. wireless mobile phone market with AT&T, Verizon, Sprint, and T-Mobile serving more than 95% of the subscribers.

Question 4

In many geographic areas, there is only a single provider for gas and electric service for businesses and consumers. However, the government regulates that entity to ensure price protection for the buyer. This is an example of
A) pure competition.
B) a pure monopoly.
C) an oligopoly.
D) monopolistic competition.
E) a megopoly.

Accepted Answer

This situation describes a pure monopoly, where a single company is the sole provider of a product or service, but it is regulated by the government to prevent price exploitation.

Question 5

Because there are few sellers, price competition among firms is avoided in which form of competition?
A) pure competition
B) cross-market competition
C) a monopoly
D) monopolistic competition
E) an oligopoly

Accepted Answer

The answer of Because there are few sellers, price competition...

Question 6

Agribusinesses that sell commodity products such as wheat, rice, and corn are often in ________ position with their competitors.
A) a limited competition
B) a pure competition
C) an oligopolistic competition
D) a monopolistic competition
E) a monopolistic

Accepted Answer

Agribusinesses that sell commodity products such as wheat, rice, and corn are often in a pure competition position with their competitors as the products are not differentiated and there are many players in the market.

Question 7

The U.S. Securities and Exchange Commission has designated just nine credit-rating agencies as nationally recognized statistical rating organizations, which include Moody's, Standard & Poor's, and Fitch Ratings. These agencies provide opinions on the creditworthiness of other entities and the financial obligations issued by them. Because so few companies can compete in it, the credit-rating industry would be considered
A) a mega monopoly.
B) an oligopoly.
C) a pure competition.
D) a monopolistic competition.
E) a pure monopoly.

Accepted Answer

An oligopoly is a market structure characterized by a small number of firms dominating the market, which is the case with the credit-rating industry where only a few agencies like Moody's, Standard & Poor's, and Fitch Ratings are recognized.

Question 8

The Federal Trade Commission investigated Google as potentially being ________, but found that despite its very large market share, it had not harmed competition.
A) a pure competitor
B) an oligopoly
C) a monopolistic competitor
D) a monopoly
E) a megopoly

Accepted Answer

The FTC investigated Google for potentially being a monopoly due to its large market share, but concluded that it had not harmed competition, which is a key factor in defining a monopoly.

Question 9

Small businesses make up a large portion of the competitive landscape for most businesses. There are approximately ________ small businesses in the United States.
A) 17 million
B) 29 million
C) 39 million
D) 52 million
E) 97 million

Accepted Answer

As of recent data, there are approximately 29 million small businesses in the United States.

Question 10

Only two companies, Intel and AMD, design the computer processors for nearly every laptop and desktop sold in the U.S. today. Intel and AMD operate in which type of competitive environment?
A) a monopoly.
B) a diopoly.
C) a pure competition.
D) an oligopoly.
E) a monopolistic competition.

Accepted Answer

Intel and AMD operate in an oligopoly, which is a market structure characterized by a small number of firms that dominate the market, allowing them to have significant control over prices and other market factors.

Question 11

The form of competition where just a few companies control the majority of industry sales is referred to as
A) pure competition.
B) cross-market competition.
C) an oligopoly.
D) monopolistic competition.
E) a monopoly.

Accepted Answer

The form of competition where just a few companies control the majority of industry sales is referred to as an oligopoly. An oligopoly occurs when a small number of firms dominate a market, leading to less competition and potentially higher prices for consumers. Examples include the wireless phone market or the airline industry.

Question 12

During the holiday shopping season, many online retailers offer buyers price reductions, coupons, two-for-one deals, or free delivery. This is because these retailers operate in ________ environment.
A) a pure competition
B) an oligopoly
C) a monopolistic competition
D) a monopoly
E) a marginal competition

Accepted Answer

Online retailers operate in a monopolistic competition environment where many sellers offer differentiated products and compete on factors other than price, such as promotions and delivery options.

Question 13

The form of competition in which there are many sellers and they each have a similar product is referred to as
A) pure competition.
B) singular competition.
C) an oligopoly.
D) monopolistic competition.
E) a monopoly.

Accepted Answer

Pure competition is characterized by a large number of small sellers who offer a homogeneous product, meaning there is no differentiation between the products. Therefore, pure competition is the form of competition in which there are many sellers and they each have a similar product.

Question 14

Boeing, Northrup Grumman, and Lockheed Martin control the vast majority of the U.S. defense contractor industry. In terms of the form of competition, this industry is an example of
A) an oligopoly.
B) a trilateral monopoly.
C) a pure monopoly.
D) a pure competition.
E) a monopolistic competition.

Accepted Answer

This industry is an example of an oligopoly because it is dominated by a few large firms, which is characteristic of an oligopolistic market structure.

Question 15

The form of competition in which many sellers compete with substitutable products within a price range is called
A) pure competition.
B) cross-market competition.
C) an oligopoly.
D) monopolistic competition.
E) a monopoly.

Accepted Answer

The description fits the characteristics of monopolistic competition, where there are many sellers in the market offering substitute products with slight differences in price and quality. This results in non-price competition, such as advertising and branding, to differentiate products and gain market share.

Question 16

Since ________ is typically regulated by the state or federal government, marketing plays a relatively small role in this setting.
A) pure competition
B) a pure monopoly
C) an oligopoly
D) monopolistic competition
E) a megopoly

Accepted Answer

In a pure monopoly, there is only one seller and therefore no competition. Since this market is typically regulated by the government, marketing does not play a significant role in determining demand or pricing strategies.

Question 17

________ is the form of competition where distribution is the only element of the marketing mix that exerts much of an impact on the firm.
A) Cross-market competition
B) Limited competition
C) Pure competition
D) Monopolistic competition
E) A monopoly

Accepted Answer

Pure competition is a scenario where many firms sell an essentially identical product and none of these firms is able to exert a significant influence on price or supply. Therefore, distribution becomes the only variable that can differentiate one firm from the other.

Question 18

The entertainment industry in the United States is dominated by Viacom, Disney, and Time Warner. In terms of the form of competition, this industry is an example of
A) a monopoly.
B) a mega monopoly.
C) a pure competition.
D) an oligopoly.
E) a monopolistic competition.

Accepted Answer

The fact that only three companies dominate the industry indicates that it is an oligopoly, where a small number of large firms control the market.

Question 19

The use of coupons is a frequently used marketing tactic for which form of competition?
A) pure competition
B) cross-market competition
C) an oligopoly
D) a monopoly
E) monopolistic competition

Accepted Answer

The use of coupons is a common marketing tactic in monopolistic competition, as it allows companies to differentiate themselves from their competitors and attract price-sensitive consumers. In a monopolistically competitive market, companies are able to differentiate their products through branding, advertising, and other marketing strategies, leading to a greater range of price points and product options for consumers. The use of coupons fits within this framework, as it allows companies to offer temporary discounts and promotions to attract customers without permanently changing their prices.

Question 20

Small businesses employ about ________ of all private-sector employees.
A) one-quarter
B) one-third
C) one-half
D) three-quarters
E) 90 percent

Accepted Answer

Small businesses employ about one-half of all private-sector employees, highlighting their significant role in the economy.

Quiz 3: Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

In marketing, the form of competition that occurs when only one firm sells the product is referred to as

AT&T, Verizon, Sprint, and T-Mobile serve more than 95 percent of the subscribers in the U.S. wireless mobile phone market. Which form of competition characterizes this market?

In many geographic areas, there is only a single provider for gas and electric service for businesses and consumers. However, the government regulates that entity to ensure price protection for the buyer. This is an example of

Because there are few sellers, price competition among firms is avoided in which form of competition?

Agribusinesses that sell commodity products such as wheat, rice, and corn are often in ________ position with their competitors.

The Federal Trade Commission investigated Google as potentially being ________, but found that despite its very large market share, it had not harmed competition.

Small businesses make up a large portion of the competitive landscape for most businesses. There are approximately ________ small businesses in the United States.

Only two companies, Intel and AMD, design the computer processors for nearly every laptop and desktop sold in the U.S. today. Intel and AMD operate in which type of competitive environment?

The form of competition where just a few companies control the majority of industry sales is referred to as

During the holiday shopping season, many online retailers offer buyers price reductions, coupons, two-for-one deals, or free delivery. This is because these retailers operate in ________ environment.

The form of competition in which there are many sellers and they each have a similar product is referred to as

Boeing, Northrup Grumman, and Lockheed Martin control the vast majority of the U.S. defense contractor industry. In terms of the form of competition, this industry is an example of

The form of competition in which many sellers compete with substitutable products within a price range is called

Since ________ is typically regulated by the state or federal government, marketing plays a relatively small role in this setting.

________ is the form of competition where distribution is the only element of the marketing mix that exerts much of an impact on the firm.

The entertainment industry in the United States is dominated by Viacom, Disney, and Time Warner. In terms of the form of competition, this industry is an example of

The use of coupons is a frequently used marketing tactic for which form of competition?

Small businesses employ about ________ of all private-sector employees.