Sunshine Biscuits, a Kellogg company who make Cheez-Its, and Frito Lay who make Rold Gold Pretzels, are considered substitute products which increases competition and limits price.

Question

Quizplus · Accepted Answer

Sunshine Biscuits and Frito Lay produce similar snack items, therefore they can be considered substitute products, which increases competition between the two companies and puts pressure on prices.

Sunshine Biscuits, a Kellogg Company Who Make Cheez-Its, and Frito