Which of the following statements concerning nonprice competition in oligopoly markets is true?
A) There is no nonprice competition in oligopoly markets.
B) Nonprice competition is important when the products sold in the market are differentiated.
C) Advertising campaigns that stress the product itself, instead of each individual firm's brand of the product, are typical in oligopoly markets.
D) Nonprice competition provides a desirable alternative to price competition because there is mutual interdependence in pricing, but not in promotional activities.

Question

Quizplus · Accepted Answer

Nonprice competition is important in oligopoly markets when products are differentiated, as firms use advertising and other strategies to distinguish their products from competitors.

Which of the Following Statements Concerning Nonprice Competition in Oligopoly