Two factors are vital to studying the effects of competition on a small firm's pricing policies:
A)the location of the competitors and the nature of the competing goods.
B)the pricing.
C)the location of the competitors and their marketing efforts.
D)Both A and B

Question

Quizplus · Accepted Answer

The location of competitors and the nature of the competing goods are important factors to consider when analyzing the effects of competition on a small firm's pricing strategies. Pricing is also a vital factor, but it is not sufficient on its own. Therefore, both A and B must be taking into account to study the effects of competition on small firms. Hence, option D is the correct choice.

Two Factors Are Vital to Studying the Effects of Competition