ECONOMICS (CBSE/UGC NET)

ECONOMICS

TECHNOLOGY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Businesses often use ____ competition, such as promotions and aggressively ____ the product on TV or online, to lure consumers into buying it.
A
nonprice/advertise
B
price/advertise
C
nonprice/sell
D
price/ advertise
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.

There is 1 question to complete.