Price competition intensifies with each of the following except:
A)increased number of competitors
B)switching costs are high
C)wider distribution of competitors
D)increased surplus capacity in the industry
E)wider distribution of substitute offers

Question

Quizplus · Accepted Answer

Switching costs refer to the cost a customer incurs when they switch from one product or service to another. If switching costs are high, customers are less likely to switch to a competitor even if prices are lower, which reduces price competition. Therefore, increased switching costs do not intensify price competition.

Price Competition Intensifies with Each of the Following Except