Multiple Choice
In a competitive market, what is most likely to happen if rivalry among competing sellers decreases?
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3. The Market Forces of Supply and Demand
Competitive Markets
Multiple Choice
In a competitive market, in order to gain market share, a business must differentiate itself from its:
A
employees
B
regulators
C
competitors
D
suppliers
Verified step by step guidance1
Understand the concept of market share: Market share refers to the portion of total sales in a market captured by a particular company.
Recognize that in a competitive market, businesses aim to increase their market share by attracting more customers compared to others.
Identify the key groups involved in a business environment: employees, regulators, suppliers, and competitors.
Analyze which group a business must differentiate itself from to gain market share. Differentiation means offering something unique or better to attract customers.
Conclude that since market share is about competing for customers, a business must differentiate itself from its competitors to stand out and attract more buyers.
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