A firm in a homogeneous market that has the ability to augment its product is more likely to need to meet a competitive price reduction than one that does not have the ability to augment its product.

Question

Quizplus · Accepted Answer

A firm that can augment its product can differentiate itself from competitors, reducing the need to match competitive price reductions as it can compete on factors other than price.

A Firm in a Homogeneous Market That Has the Ability