Question detail
EcoWash serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?2,626, sales of 756 units, and a 13% change in costs or demand. Which option best applies Identify situations where businesses face minimal or no 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 to judge net profit margin, owners impact, and the business objective in Competition and markets.
- B. Give only a definition of Competitive environment without using the case evidence.
- C. Treat efficiency and productivity as identical and ignore the effect on owners.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use competition to judge net profit margin, owners impact, and the business objective in Competition and markets.
Explanation
This option works because Use competition to judge net profit margin, owners impact, and the business objective in Competition and markets. The case evidence gives ?4,126, 756 units, and 13%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse efficiency and productivity, miss the owners, or ignore the business objective.
Common mistake
Competition and markets common mistake 1
Giving a vague answer instead of directly addressing: Identify situations where businesses face minimal or no competition..
Answer by clearly explaining how to identify situations where businesses face minimal or no competition..
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