Camille's Chicken operates in a monopolistically competitive market.If Camille implements a new free delivery service for customers,
A)this is an example of advertising
B)this is a form of nonprice competition
C)total revenue will increase
D)total cost will decrease
E)her firm will be acting as if it were perfectly competitive market

Question

Quizplus · Accepted Answer

Offering free delivery is a form of nonprice competition, as it is a way to differentiate Camille's Chicken from its competitors without directly lowering the price of its products. It may also lead to an increase in total revenue if the new delivery service attracts more customers or encourages existing customers to order more frequently. However, it is unlikely that total costs will decrease due to the additional expenses associated with providing the delivery service. The firm will still operate in a monopolistically competitive market.

Camille's Chicken Operates in a Monopolistically Competitive Market