Question

Which entities should corporations monitor as competitors?

A) Organizations with similar values
B) Companies with diverse products
C) Entities producing substitute products
D) Companies with joint-venture agreements

Answer 1

Corporations should monitor competitors producing substitute products in both monopolistic competition and oligopolistic markets to maintain market share and profitability.

Step-by-step explanation:

Corporations should monitor entities producing substitute products as competitors. This includes firms in monopolistic competition, where many firms compete to sell similar but differentiated products, and those in an oligopoly, where a few large firms dominate the industry. These competitors can impact a corporation's market share and profitability, especially in markets that are not perfectly competitive. Furthermore, corporations sometimes join together in associations for various reasons such as gaining strength in numbers, addressing common industry-wide issues, and collectively benefiting from government policies.