Multiple Choice
In a competitive market, in order to gain market share, a business must differentiate itself from its:
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3. The Market Forces of Supply and Demand
Competitive Markets
Multiple Choice
A group of companies that deal with more or less the same set of suppliers and buyers make up which of the following?
A
A cartel
B
A monopoly
C
An industry
D
A market segment
Verified step by step guidance1
Understand the definitions of each option: A 'cartel' is a group of independent companies that collude to control prices or limit competition; a 'monopoly' is a single seller dominating the entire market; an 'industry' consists of all companies producing similar goods or services and dealing with similar suppliers and buyers; a 'market segment' refers to a subgroup of consumers within a market sharing common characteristics.
Identify the key phrase in the question: 'a group of companies that deal with more or less the same set of suppliers and buyers.' This implies multiple companies operating in the same area of production or trade.
Recognize that a 'cartel' involves collusion and is not just any group of companies, and a 'monopoly' involves only one company, so these options do not fit the description.
Understand that a 'market segment' focuses on consumers, not companies or suppliers, so it is not the best fit here.
Conclude that the term 'industry' best describes a group of companies dealing with similar suppliers and buyers, as it encompasses all firms producing similar products or services.
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