ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Businesses often use ____ competition, such as promotions and aggressively ____ the product on TV or online, to lure consumers into buying it.
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nonprice/advertise
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price/advertise
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nonprice/sell
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price/ advertise
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Explanation:
Detailed explanation-1: -Marketing involves a range of approaches (based round the 4Ps), including product differentiation, advertising, promotion and distribution.
Detailed explanation-2: -Monopolistic markets engage in non-price competition because of how the market is designed where the firm dominates the market.
Detailed explanation-3: -Economists have identified four types of competition-perfect competition, monopolistic competition, oligopoly, and monopoly.
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.
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