Which of the following conditions would intensify price competition?
A)Personal relationships matter to customers
B)There is increased surplus capacity in the industry
C)Customers want to use services at specific times and locations
D)Saving time and effort are more important to customers
E)Switching costs are high

Question

Quizplus · Accepted Answer

Increased surplus capacity in the industry would mean that there is an excess supply of the product or service, which creates more competition among companies to attract customers with lower prices.

Which of the Following Conditions Would Intensify Price Competition