Question detail
MetroMove serves repeat customers while raising prices; the case evidence includes unit contribution of ?8,654, sales of 849 units, and a 9% change in costs or demand. Which option best applies Explain the meaning of a market and competition?
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, market to judge unit contribution, 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 fixed and variable costs 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, market to judge unit contribution, lenders impact, and the business objective in Competition and markets.
Explanation
This option works because Use competition, market to judge unit contribution, lenders impact, and the business objective in Competition and markets. The case evidence gives ?10,154, 849 units, and 9%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse fixed and variable costs, miss the lenders, or ignore the business objective.
Common mistake
Competition and markets common mistake 1
Giving a vague answer instead of directly addressing: Explain the meaning of a market and competition..
Answer by clearly explaining how to explain the meaning of a market and competition..
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