ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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barriers to entry.
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location.
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price.
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collusion.
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Detailed explanation-1: -Marketing involves a range of approaches (based round the 4Ps), including product differentiation, advertising, promotion and distribution.
Detailed explanation-2: -Why is location a factor in non-price competition? Businesses must be careful about where they place their products or services. People rely on comfort, and convenience becomes the key factor in choosing products or services. Hence, location becomes a factor in marketing strategies.
Detailed explanation-3: -Non-price competition typically involves promotional expenditures (such as advertising, selling staff, the locations convenience, sales promotions, coupons, special orders, or free gifts), marketing research, new product development, and brand management costs.
Detailed explanation-4: -nonprice competition shifts both the demand and MC curves upward to the right. this results in a smaller output, a higher price, and more economic profits.