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  3. There are four basic types of competition in business that form a continuum from pure competition through monopolistic competit

There are four basic types of competition in business that form a continuum from pure competition through monopolistic competit

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问题     There are four basic types of competition in business that form a continuum from pure competition  through monopolistic competition and oligopoly to monopoly. At one end of the continuum, pure competition results when every company has a similar product. Companies that deal in commodities such as wheat or corn are often involved in pure competition. In pure competition, it is often the ease and efficiency of distribution that influences purchase.
    In contrast, in monopolistic competition, several companies may compete for the sale of items that may be substituted. The classic example of monopolistic competition is coffee and tea. If the price of one is perceived as too high, consumers may begin to purchase the other. Coupons and other  discounts are often used as part of a marketing strategy to influence sales.
    Oligopoly occurs when a few companies dominate the sales of a product or service. For example,  only five airline carriers control more than 70 percent of all ticket sales in the United States. In oligopoly, serious competition is not considered desirable because it would result in reduced revenue for every company in the group. Although price wars do occur, in which all companies offer substantial  savings to customers  a somewhat similar tendency to raise prices simultaneously is also usual.
    Finally, monopoly occurs when only one firm sells the product. Some monopolies have been tolerated  for producers of goods and services that have been considered basic or essential, including electricity  and water. In these eases, it is government control, rather than competition, that protects and influences sales.
What does the author mean by the statement "Although price wars do occur, in which all companies offer substantial savings to customers, a somewhat similar tendency to raise prices simultaneously is also usual"?
选项 A、It is not unusual for all companies to increase prices at the same time.
B、It is common for companies to compete for customers by lowering prices.
C、Customers may lose money when companies have price wars.
D、Prices are lower during price wars, but they are usually higher afterward.
答案A
解析 作者的意思是，虽然也会出现顾客受益的价格战，但所有的公司联合起来提高价格也是很常见的。
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