The two dimensions of the rivalry between current competitors in a product market are _____ and _____.
A)barriers to entry; switching costs
B)price competition; non-price competition
C)market power; switching costs
D)non-price competition; barriers to entry

Question

Quizplus · Accepted Answer

The two dimensions of the rivalry between current competitors in a product market are price competition and non-price competition. Price competition involves lowering prices to gain market share or to remain competitive, while non-price competition involves marketing, advertising, product differentiation, and other strategies that do not involve directly lowering prices. The other answer choices are not correct because they do not reflect the two dimensions of rivalry between current competitors in a product market.

The Two Dimensions of the Rivalry Between Current Competitors in a Product