Question detail
EcoWash serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?4,278, sales of 453 units, and a 15% change in costs or demand. Which option best applies Analyse potential impacts of competition on businesses?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Competitive environment
Question
- A. Use competition to judge labour productivity, lenders impact, and the business objective in Competition and markets.
- B. Give only a definition of Competitive environment without using the case evidence.
- C. Treat gross and net profit as identical and ignore the effect on lenders.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use competition to judge labour productivity, lenders impact, and the business objective in Competition and markets.
Explanation
This option works because Use competition to judge labour productivity, lenders impact, and the business objective in Competition and markets. The case evidence gives ?5,778, 453 units, and 15%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse gross and net profit, miss the lenders, or ignore the business objective.
Common mistake
Competition and markets common mistake 1
Giving a vague answer instead of directly addressing: Analyse potential impacts of competition on businesses..
Answer by clearly explaining how to analyse potential impacts of competition on businesses..
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