A major factor in industry analysis is the level of competition in an industry.Which of these is not correct?
A)As competition increases,prices increase
B)In perfect competition,there are a high number of substitute products and high price elasticity of demand
C)In monopoly,there are no substitute products or services
D)In a monopoly,prices are higher than any situation of competition

Question

Quizplus · Accepted Answer

As competition increases, prices typically decrease as companies vie for customers. This is due to the principle of supply and demand - as supply increases, prices typically decrease.

A Major Factor in Industry Analysis Is the Level of Competition