Question 1

Competition refers to
A)identical products that perform identical functions.
B)any for-profit organization that targets the customers of other organizations.
C)alternative firms that could provide a product to satisfy a specific market's needs.
D)any product or service that vies for a portion of a customer's discretionary income.
E)the set of firms that operate in a given geographic region, regardless of product or service.

Accepted Answer

Competition refers to the alternative firms that could provide a product to satisfy a specific market's needs. This means that multiple firms are competing to sell their products or services to the same target market. A and D limit the definition of competition to only certain products and do not capture the broader concept of competing for customers in general. B and E are not accurate definitions of competition and do not address the core concept of firms competing for customers.

Question 2

Alternative firms that could provide a product to satisfy a specific market's needs are referred to as
A)substitute firms.
B)target markets.
C)complementary firms.
D)cross product marketers.
E)competition.

Accepted Answer

The answer of Alternative firms that could provide a product...

Question 3

In many geographic areas, there is only a single provider for gas and electric service for businesses and consumers. However, the government regulates that firm 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

A pure monopoly exists when there is only one supplier of a particular product or service in a market. In this scenario, there is only one provider for gas and electric service, making it a pure monopoly. However, government regulation ensures price protection for the buyer, which distinguishes this from an unregulated pure monopoly.

Question 4

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

This environment is an example of monopolistic competition because there are several auto dealerships offering both domestic and foreign cars and trucks in Wausau. Paul Avery's dealership is just one of many offering comparable products, so he has to work hard to keep his customers satisfied in order to compete in the market.

Question 5

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)pure monopoly.

Accepted Answer

When only one firm sells a specific product or service in a market with no close substitutes, it is a pure monopoly. This means that the firm has complete control over price and output, with no competition to constrain its actions.

Question 6

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 identical or very similar products. No one seller has any significant control over the price, and each seller must accept the market price determined by supply and demand forces.

Question 7

__________ 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

In pure competition, all firms sell an identical product, and distribution becomes the only element of the marketing mix that can exert any impact on the firm. This is because the product is standardized, and pricing and promotion are also determined by the market. Thus, distribution becomes the main differentiating factor among competitors in pure competition.

Question 8

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 monopoly.

Accepted Answer

The credit-rating industry is dominated by a small number of major players, making it an oligopoly. This is because barriers to entry are high due to the expertise, reputation, and regulatory requirements necessary to be recognized as a nationally recognized statistical rating organization. While there are still some smaller players in the market, the majority of market share is held by a few large firms.

Question 9

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

Monopolistic competition involves many sellers offering substitutable products within a certain price range, leading to a differentiated market. Pure competition involves identical products with no differentiation, cross-market competition involves two or more different markets competing with each other, an oligopoly involves a few large firms dominating the market, and a monopoly involves only one firm with no competition.

Question 10

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

An oligopoly is a market structure in which a few large firms dominate the market. Viacom, Disney, and Time Warner are dominant players in the entertainment industry, indicating that it is an oligopoly. A monopoly would involve a single firm controlling the industry, a pure competition would have many small firms competing, and monopolistic competition would involve many firms offering differentiated products to varying degrees. A mega monopoly is not a recognized economic term.

Question 11

In business, the four basic forms of competition are
A)pure competition, limited competition, oligopoly, and monopoly.
B)dictatorship, monarchy, oligarchy, and democracy.
C)pure competition, cross-market competition, oligopoly, and pure monopoly.
D)technological competition, market competition, governmental competition, and environmental competition.
E)pure competition, monopolistic competition, oligopoly, and pure monopoly.

Accepted Answer

The four basic forms of competition in business are pure competition, monopolistic competition, oligopoly, and pure monopoly. Pure competition involves many small firms selling identical products with no barriers to entry. Monopolistic competition involves many small firms selling differentiated products with some barriers to entry. Oligopoly involves a few large firms dominating the market with significant barriers to entry. Pure monopoly involves a single firm dominating the market with complete barriers to entry.

Question 12

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 monopoly.
D)a pure competition.
E)a monopolistic competition.

Accepted Answer

An oligopoly is a market structure in which a few large firms dominate the industry, and this is the case with the U.S. defense contractor industry. The presence of few large firms creates a situation where they are interdependent, and their decisions affect each other's profitability. They can control prices to some extent, and also invest heavily in research and development to remain competitive. Hence, an oligopoly is the best choice for this industry.

Question 13

Many firms now use e-mail and the Internet to promote their products instead of sending promotional literature to current and prospective customers through the mail. UPS and FedEx continue to grow, offering both overnight and ground package delivery services. As a result, the U.S. Postal Service (USPS) has lost millions of customers and billions in revenue. The USPS has challenges ahead in coping with ___________ forces in the marketplace.
A)economic
B)competitive
C)legal
D)social
E)technological

Accepted Answer

The use of UPS and FedEx instead of the USPS for package delivery is an example of competition in the marketplace. The other choices may also have some impact, but competitive forces are the most relevant in this particular situation.

Question 14

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

Accepted Answer

Catalog retailers compete in a monopolistic competition environment where they offer differentiated products and use promotional activities to attract customers. This is evidenced by the price reductions, coupons, and other deals they offer to stand out from competitors. Pure competition, oligopoly, and monopoly environments are less common in catalog retailing. Marginal competition is not a recognized category of market structure.

Question 15

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 in a pure competition position with their competitors. This means that there are numerous small businesses competing in the market with identical or similar products, and no single business has control over the price or supply of the product.

Question 16

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 strategy used in monopolistic competition, where firms try to differentiate their products from their competitors by creating brand loyalty through advertising, sales promotions like coupons, and product differentiation.

Question 17

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

A pure monopoly is a market structure in which a single company is the only supplier of a particular product or service, and it is typically regulated by the state or federal government to prevent exploitation and unfair practices. As a result, marketing plays a relatively small role in this setting, as the company's pricing and production decisions are likely to be heavily influenced by regulatory considerations rather than competitive pressures or consumer demand.

Question 18

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 a market structure in which a small number of firms compete with each other, and this describes the U.S. wireless mobile phone market with the four major service providers (AT&T, Verizon, Sprint, and T-Mobile) holding significant market power and dominating the industry.

Question 19

Because there are few sellers, price competition among firms is not desirable for them in which form of competition?
A)pure competition
B)cross-market competition
C)a monopoly
D)monopolistic competition
E)an oligopoly

Accepted Answer

In an oligopoly, there are few sellers, and they often avoid price competition to maintain stable profits and avoid price wars.

Question 20

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

An oligopoly is a market situation where there are few dominant firms that control the majority of industry sales. This leads to reduced competition and the potential for collusion among the dominant firms. This differs from pure competition, where there are many small firms with no dominant players, monopolistic competition, where there are many firms with differentiated products, and a monopoly, where a single firm has complete control over the market.

Quiz 3: Scanning the Marketing Environment

Competition refers to

Alternative firms that could provide a product to satisfy a specific market's needs are referred to as

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

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

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

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

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

In business, the four basic forms of competition are

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

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

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

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

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

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?

Because there are few sellers, price competition among firms is not desirable for them in which form of competition?

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