_____ occurs if Coke hires Sidney Crosby to make a commercial and Pepsi follows by hiring Wayne Gretzky for its commercial.
A) Tacit collusion
B) Non-price competition
C) Antitrust policy
D) Price leadership

Question

Quizplus · Accepted Answer

This is an example of non-price competition, where firms compete on aspects other than price, such as advertising and promotion. Both Coke and Pepsi are using celebrity endorsements as a way to differentiate themselves and appeal to consumers.

_____ Occurs If Coke Hires Sidney Crosby to Make a Commercial