Question detail
SolarSprout serves local families while changing supplier; the case evidence includes gross profit margin of ?10,148, sales of 638 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 labour productivity, customers impact, and the business objective in Competition and markets.
- B. Give only a definition of Competitive environment without using the case evidence.
- C. Treat margin and markup as identical and ignore the effect on customers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use competition to judge labour productivity, customers impact, and the business objective in Competition and markets.
Explanation
The option is correct because Use competition to judge labour productivity, customers impact, and the business objective in Competition and markets. The case evidence gives ?11,648, 638 units, and 13%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse margin and markup, miss the customers, 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..
Related flashcards
Flashcard 1 of 5
Related practice questions
Question 1 of 5
Choose an answer, get feedback, then move sideways through the set.