Regarding the competitive environment:
A) It is easy to find environments that are "competitor-free."
B) Monopoly situations are more common than are situations characterized by monopolistic competition.
C) "Competitive rivals" are a firm's closest competitors.
D) Competitor analysis should begin with an identification of competitors from the viewpoint of the manager, not the consumer.

Question

Quizplus · Accepted Answer

Competitive rivals are firms that offer similar products or services to a firm's target market, and are typically the closest and most direct competitors. Option A is incorrect because truly "competitor-free" environments are extremely rare, if not impossible. Option B is incorrect because monopolies are very rare in most markets, and are typically subjected to government regulation. Option D is incorrect because competitor analysis should begin with an identification of all potential competitors from the standpoint of the customer.

Regarding the Competitive Environment