If bottled water, soft drinks and juices are included in the definition of the beverage market, then the relevant definition of the market is defined by

Question

Quizplus · Accepted Answer

The relevant definition of the market for beverages is defined by the high degrees of substitution between products in the market, which means that consumers can easily switch between different types of beverages such as bottled water, soft drinks, and juices. This suggests that the market is competitive and firms must differentiate their products to meet consumer preferences. The locations of product production and the level of competition among firms are not necessarily defining characteristics of the beverage market.

If Bottled Water, Soft Drinks and Juices Are Included in the Definition