Business Essentials 2.05 Ready, Set, Compete

Which of the following is one of the main principles of the private enterprise system:

• Monopoloies

• Competition

• Price fixing

• Exclusive agreements

Burger King and McDonald's are examples of

• Regulated monopolies

• Unregulated businesses

• Dissimilar firms

• Direct competitors

If a consumer chooses to go to the movies rather than to a pizza parlor, then the movie theater and the pizza parlor are

• Direct competitors

• Indirect competitors

• Engaging in prospecting

• Engaged in price competition

Most businesses put their greatest competitive efforts into competing

• Locally

• Nationally

• With direct competitors

• When with indirect competitors

An electronics store charges less for a new television than other electronics store. The store is engaging in competition.

• Price

• Nonprice

• Unethical

• Sales

When Maura purchased a new car, she was able to get part of the purchase price back from the car's manufacturer. The car's manufacturer engaged in

• Price fixing

• Non-price competition

• Clearance sales

• Offering rebates

Offering high quality, large assortments, and free shipping are examples of

• Rebates

• Nonprice competition

• Price fixing

• Price competition

A business that advertises a special sale as well as its delivery service is using a combination of competition.

• Price and nonprice

• Direct and indirect

• Perfect and monopolistic

• Local and national

Which of the following statements about perfect competition is correct:

• There is a limited supply of goods and services

• Businesses have a good deal of control over the market

• Products vary from seller to seller

• Is is used as a benchmark to compare real market structures against

What type of market structure is most commonly found in a private enterprise economy?

• Perfect competition

• Regulated monopolu

• Oligopoly

• Monopolistic competition