Which of the following statements is true?
A) Nonprice competition can increase businesses' costs and can lead to higher prices for buyers.
B) Business firms are attracted to nonprice competition because it provides a way to increase product demand.
C) By highlighting differences and playing down similarities, nonprice competition helps an individual firm make its product appear unique.
D) All of the above.

Question

Quizplus · Accepted Answer

All the statements are true. Nonprice competition, such as advertising and product differentiation, can indeed increase a business's costs, which might lead to higher prices for consumers. Firms are attracted to nonprice competition as it can increase demand for their products by making them stand out. By emphasizing differences and minimizing similarities, nonprice competition helps firms make their products appear unique, potentially attracting more customers.

Which of the Following Statements Is True