As a basic rule of thumb, when price competition is intense, business owners should try to:
A)differentiate their products as much as possible.
B)charge as low a price as possible.
C)charge as high a price as possible.
D)produce a product as similar to rivals as possible.

Question

Quizplus · Accepted Answer

When price competition is intense, differentiation becomes crucial. Business owners should try to differentiate their products as much as possible to offer unique value propositions and stand out from their competitors. This can help them charge a higher price and still attract customers who are willing to pay for the unique features and benefits that their product offers. Charging as low a price as possible may lead to lower profit margins and may not always be sustainable in the long run. Similarly, producing a product that is too similar to rivals may not help in generating customer interest or loyalty.

As a Basic Rule of Thumb, When Price Competition Is