The computer industry is an example of an industry in which firms rely more heavily on product innovation than on price competition to gain an advantage in the market.

Question

Quizplus · Accepted Answer

This is generally true in the computer industry. Firms compete primarily on product innovation and differentiation, rather than on price, as consumers are usually willing to pay a premium for new and improved technology. Additionally, the cost of production and manufacturing can be high, which limits the scope for price competition.

The Computer Industry Is an Example of an Industry in Which