Two factors are vital to studying the effects of competition on a small firm's pricing policies: the location of the competitors and the nature of the competing goods.

Question

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The location of competitors and the nature of competing goods are important factors to consider when studying the effects of competition on a small firm's pricing policies. This is because the presence of close competitors or similar goods can impact a small firm's ability to set prices and attract customers.

Two Factors Are Vital to Studying the Effects of Competition