In the absence of product differentiation, _____ to prevail, leading to _____ profits.
A)barriers to entry tend; high
B)barriers to entry tend; low
C)price competition tends; low
D)price competition tends; high

Question

Quizplus · Accepted Answer

In markets without product differentiation, price competition tends to be the primary way firms compete, which often leads to lower profits due to the downward pressure on prices.

In the Absence of Product Differentiation, _____ to Prevail, Leading