The Market (Edexcel A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is competition?
What is competition?
Rivalry between businesses in same market
What does product differentiation mean?
What does product differentiation mean?
Making products distinct via features/brand
Which is an example of additional services businesses offer to compete?
Which is an example of additional services businesses offer to compete?
Extended warranties
How does competing affect business profit margins?
How does competing affect business profit margins?
All competitive methods reduce margins
Why do businesses use takeovers to reduce competition?
Why do businesses use takeovers to reduce competition?
To remove rivals as competitors
What is predatory pricing?
What is predatory pricing?
Selling below cost to force rivals out
How does competition benefit consumers through choice?
How does competition benefit consumers through choice?
Markets offer consumers more options
Why does competition lead to lower prices for consumers?
Why does competition lead to lower prices for consumers?
Pressure forces firms to keep prices fair
What happens to innovation when competition is lacking?
What happens to innovation when competition is lacking?
Innovation slows down or stops entirely
What is the government's role regarding market competition?
What is the government's role regarding market competition?
Ensuring competition exists in markets