Solomon: Better Business, Second Canadian Edition Chapter 2: The Environment of Business
Objective: 2.5 Summarize the four degrees (levels) of competition athat may exist within an industry. 101) The number of substitutes for a particular product or service determines the level of competition. a. True Correct: Various industries experience different degrees of competition, ranging from many competitors to few or no competitors. b. False Incorrect: Various industries experience different degrees of competition, ranging from many competitors to few or no competitors. Answer: a Diff: 1 Type: TF Page Reference: 32 Objective: 2.5 Summarize the four degrees (levels) of competition athat may exist within an industry. 102) If Bruno’s Pizzeria is the only place where people can get pizza in the neighbourhood, then we can say that Bruno has an oligopoly. a. True Incorrect: Bruno’s Pizzeria is a monopoly because it is the only place where people can get pizza. If a few more businesses moved into the neighbourhood, then it would be an oligopoly. b. False Correct: Bruno’s Pizzeria is a monopoly because it is the only place where people can get pizza. If a few more businesses moved into the neighbourhood, then it would be an oligopoly. Answer: b Diff: 2 Type: TF Page Reference: 32 Objective: 2.5 Summarize the four degrees (levels) of competition athat may exist within an industry. 103) An oligopoly is a form of competition in which only a few sellers exist. a. True Correct: An oligopoly may be formed when another company enters a monopoly. b. False Incorrect: An oligopoly may be formed when another company enters a monopoly. Answer: a Diff: 1 Type: TF Page Reference: 33 51 Copyright © 2016 Pearson Canada Inc.