Question detail
StyleHub serves repeat customers while raising prices; the case evidence includes unit contribution of ?4,339, sales of 819 units, and a 30% 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 break-even output, employees impact, and the business objective in Competition and markets.
- B. Give only a definition of Competitive environment without using the case evidence.
- C. Treat stakeholders and shareholders as identical and ignore the effect on employees.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use competition to judge break-even output, employees impact, and the business objective in Competition and markets.
Explanation
This answer fits the scenario because Use competition to judge break-even output, employees impact, and the business objective in Competition and markets. The case evidence gives ?5,839, 819 units, and 30%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse stakeholders and shareholders, miss the employees, 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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