160) The form of competition in which many sellers compete with substitutable products within
a price range is called
A) pure competition.
B) cross-market competition.
C) an oligopoly.
D) monopolistic competition.
E) a monopoly.
161) The use of coupons is a frequently used marketing tactic for which form of competition?
A) pure competition
B) cross-market competition
C) an oligopoly
D) a monopoly
E) monopolistic competition
162) Paul Avery is a salesperson at the only Ford automobile dealership in Wausau, Wisconsin.
However, there are several other auto dealerships in town, offering both domestic and foreign
cars and trucks. Paul works hard to keep his customers satisfied because he knows that if his
customers are unhappy, they can simply buy a car from one of the several other comparable
dealers in Wausau. This marketing environment is an example of
A) pure competition.
B) monopolistic competition.
C) an oligopoly.
D) a monopoly.
E) marginal competition.
163) During the holiday shopping season, many online retailers offer buyers price reductions,
two-for-one deals, or free delivery. This is because these retailers operate in a(n) ________
environment.
A) pure competition
B) oligopoly
C) monopolistic competition
D) monopoly
E) marginal competition
164) The form of competition where just a few companies control the majority of industry sales
is referred to as
A) pure competition.
B) cross-market competition.
C) an oligopoly.
D) monopolistic competition.
E) a monopoly.
165) AT&T, Verizon, Sprint, and T-Mobile serve more than 95 percent of the subscribers in the
U.S. wireless mobile phone market. Which form of competition characterizes this market?
A) pure competition
B) limited competition
C) a monopoly
D) an oligopoly
E) monopolistic competition
166) Because there are few sellers, price competition among firms is avoided in which form of
competition?
A) pure competition
B) cross-market competition
C) a monopoly
D) monopolistic competition
E) an oligopoly
167) The entertainment industry in the United States is dominated by Viacom, Disney, and Time
Warner. In terms of the form of competition, this industry is an example of a(n)
A) monopoly.
B) mega monopoly.
C) pure competition.
D) oligopoly.
E) monopolistic competition.
168) Only two companies, Intel and AMD, design the computer processors for nearly every
laptop and desktop sold in the U.S. today. Intel and AMD operate in which type of competitive
environment?
A) a pure monopoly
B) an oligopoly
C) pure competition
D) monopolistic competition
E) a diopoly
169) The U.S. Securities and Exchange Commission has designated just nine credit-rating
agencies as nationally recognized statistical rating organizations, which include Moody’s,
Standard & Poor’s, and Fitch Ratings. These agencies provide opinions on the creditworthiness
of other entities and the financial obligations issued by them. Because so few companies can
compete in it, the credit-rating industry would be considered a(n)
A) mega monopoly.
B) oligopoly.
C) pure competition.
D) monopolistic competition.
E) pure monopoly.
170) Boeing, Northrup Grumman, and Lockheed Martin control the vast majority of the U.S.
defense contractor industry. In terms of the form of competition, this industry is an example of
a(n)
A) oligopoly.
B) trilateral monopoly.
C) pure monopoly.
D) pure competition.
E) monopolistic competition.
171) In marketing, the form of competition that occurs when only one firm sells the product is
referred to as
A) pure competition.
B) a megopoly.
C) an oligopoly.
D) monopolistic competition.
E) a pure monopoly.
172) Since ________ is typically regulated by the state or federal government, marketing plays a
relatively small role in this setting.
A) pure competition
B) a pure monopoly
C) an oligopoly
D) monopolistic competition
E) a megopoly
173) In many geographic areas, there is only a single provider for gas and electric service for
businesses and consumers. However, the government regulates that firm to ensure price
protection for the buyer. This is an example of
A) pure competition.
B) a pure monopoly.
C) an oligopoly.
D) monopolistic competition.
E) a megopoly.
174) The Federal Trade Commission investigated Google as potentially being a(n) ________,
but found that despite its very large market share, it had not harmed competition.
A) pure competitor
B) oligopoly
C) pure monopoly
D) monopolistic competitor
E) megopoly
175) The factors that drive competition include
A) monopolistic competition, cross-market competition, entry, and the bargaining power of
buyers and suppliers.
B) cross-market competition, entry, the bargaining power of buyers and suppliers, and
substitution possibilities.
C) monopolistic competition, cross-market competition, bargaining power of buyers and
suppliers, existing rivalries.
D) entry, the bargaining power of buyers and suppliers, existing rivalries, and substitution
possibilities.
E) cross-market competition, entry, bargaining power of buyers and suppliers, substitution
possibilities.
176) Business practices or conditions that make it difficult for new firms to enter the market are
referred to as
A) market obstructions.
B) barriers to entry.
C) switching costs.
D) import-export firewalls.
E) preemptive practices.
177) Barriers to entry refer to
A) governmental prohibitions regarding the establishment of businesses that are considered
immoral.
B) governmental prohibitions regarding the establishment of businesses that are considered legal
but unethical.
C) strong-armed tactics that are illegal but commonly used in certain industries to hinder
competition.
D) business practices that make it difficult for new firms to enter the market.
E) restrictions against certain consumers’ purchase of a product.
178) Which of the following would be considered a barrier to entry, one of the factors that
impacts competition?
A) personnel shortages
B) distribution access
C) field of experience
D) inventory deficits
E) prior enterprise failures
179) In terms of competitive forces, powerful buyers exist when
A) there are many buyers.
B) the product represents a small share of the buyer’s total costs.
C) switching costs are low.
D) the product is critical to the buyer.
E) preemptive practices exist.
180) Competitive pressures among existing firms depend on
A) the current economic growth rate.
B) the total number of established competitors.
C) low fixed costs.
D) the rate of industry growth.
E) the availability of raw materials and natural resources.
181) Small businesses make up the majority of the competitive landscape for most businesses.
There are approximately ________ small businesses in the United States.
A) 17 million
B) 29 million
C) 39 million
D) 52 million
E) 97 million
182) Small businesses employ about ________ of all private-sector employees.
A) one-quarter
B) one-third
C) one-half
D) three-quarters
E) ninety percent
183) Small businesses account for ________ of the gross domestic product (GDP).
A) 21 percent
B) 32 percent
C) 46 percent
D) 68 percent
E) 82 percent
184) The restrictions that state and federal laws place on business with regard to the conduct of
its activities are referred to as
A) jurisprudence.
B) competitive constraints.
C) barriers to entry.
D) restraints of trade.
E) regulation.
185) Regulation refers to
A) the restrictions that state and federal laws place on business with regard to the conduct of its
activities.
B) constraints placed on businesses for activities that are legal but unethical.
C) society’s values and standards that are enforceable in the courts.
D) requirements concerning which customers a firm may serve or not serve.
E) the moral principles and values that govern the actions and decisions of an individual or
group.
186) An Arizona cardiac surgery practice agreed to pay the U.S. Department of Health and
Human Services a $100,000 settlement following an investigation of potential violations of the
Health Insurance Portability and Accountability Act (HIPAA) Privacy and Security Rules. The
practice posted clinical and surgical appointments for its patients on an Internet-based calendar
that was publicly accessible, which drew complaints for failing to protect health information of
consumers. HIPAA rules are an example of ________ forces in the marketing environment.
A) economic
B) ecological
C) technological
D) social
E) regulatory
187) Visa and MasterCard have recently been accused of violating antitrust laws by improperly
fixing credit and debit card fees (known as swipe fees) paid by retailers to use their services,
creating an anti-competitive environment. Legislation that prohibits price-fixing is an example of
________ forces that affect the marketing environment.
A) economic
B) ecological
C) technological
D) regulatory
E) social
188) F. Hoffman-LaRoche Ltd. and BASF AG, two international pharmaceutical companies,
were ordered to pay $725 million in fines for plotting to raise and fix prices of commonly used
vitamins in the United States. This is an example of how ________ forces affect the marketing
environment.
A) economic
B) ecological
C) technological
D) social
E) regulatory
189) The first major federal legislation passed to forbid contracts, combinations, or conspiracies
in restraint of trade in the United States was the
A) Lanham Act.
B) Sherman Antitrust Act.
C) Federal Trade Commission Act.
D) Robinson-Patman Act.
E) Clayton Act.
190) The first major federal legislation passed to forbid actual monopolies or attempts to
monopolize any part of trade or commerce in the United States was the
A) Lanham Act.
B) Federal Trade Commission Act.
C) Robinson-Patman Act.
D) Sherman Antitrust Act.
E) Clayton Act.
191) Which of the following laws has the purpose of protecting competition?
A) Lanham Act
B) Federal Trade Commission Act
C) Fair Trade Act
D) Unfair Practices Act
E) Sherman Antitrust Act
192) The purpose of the Clayton Act is to
A) provide incentives for interstate commerce.
B) forbid actions that are likely to lessen competition, although no actual harm has yet occurred.
C) exact compensation from firms found guilty of violating fair trade practices.
D) repeal provisions of the Sherman Antitrust Act that stifled innovation.
E) strengthen the Robinson-Patman Act.
193) The purpose of the ________ is to forbid certain actions that are likely to lessen
competition, although no actual harm has yet occurred.
A) Federal Trade Commission Act
B) Lanham Act
C) Clayton Act
D) Sherman Antitrust Act
E) Robinson-Patman Act
194) Protecting competition is the primary aim of which of these?
A) Prevention and Enforcement Act
B) Clayton Act
C) Federal Trade Commission Act
D) Fair Trade Act
E) Unfair Practices Act
195) The purpose of the Robinson-Patman Act is to
A) outlaw price discrimination for purchasers of the same product.
B) establish regulated monopolies for utilities.
C) protect inventors from having their intellectual property stolen.
D) repeal the Sherman Antitrust Act.
E) provide incentives for interstate commerce.
196) The federal government enacted the ________ to make it unlawful to discriminate in prices
charged to different purchasers of the same product, where the effect may substantially lessen
competition or help to create a monopoly.
A) Fair Trade Act
B) Clayton Act
C) Lanham Act
D) Robinson-Patman Act
E) Unfair Practices Act
197) The purpose of patent law is to
A) provide incentives for increased competition and lower prices by limiting the granting of
patents.
B) give an author of a literary, dramatic, musical, or artistic work the exclusive right to print,
perform, or otherwise copy that work.
C) give inventors of new and novel products the right to exclude others from making, using, or
selling products that infringe the patented invention.
D) guarantee the quality and safety of any product produced or distributed in the United States.
E) level the playing field between inventors who work for large corporations and those who
work on their own.
198) A company can protect its competitive position under ________, which gives inventors of
new and novel products the right to exclude others from making, using, or selling products that