Price competition is increased when which of the following occurs??
A)Many sellers in the market
B)Products are differentiated
C)Firms are producing at capacity
D)Buyers have high switching costs
E)Firms purchase raw materials from the same suppliers

Question

Quizplus · Accepted Answer

When there are many sellers in the market, each firm will try to attract buyers by offering lower prices than its competitors. This leads to increased price competition as firms try to undercut each other's prices.

Price Competition Is Increased When Which of the Following Occurs