Which of the following reduces price competition?
A)Increasing the number of competitors.
B)Increasing the number of substituting offers.
C)Wider distribution of competitor and/or substitution offers.
D)High switching costs for consumers.
E)Increasing surplus capacity in the industry.

Question

Quizplus · Accepted Answer

High switching costs for consumers reduce price competition because it makes it more difficult for customers to switch to a cheaper alternative, giving businesses more pricing power.

Which of the Following Reduces Price Competition