The particular type of competition dramatically influences the range of price competition and, in turn,
A)the nature of product differentiation and extent of advertising.
B)the nature of product differentiation and extent of on-hand inventory.
C)the degree of involvement with each of the organization's stakeholders.
D)the degree of involvement with both retailers and wholesalers.
E)the relationship between product lines and product classes.

Question

Quizplus · Accepted Answer

The type of competition directly affects how much firms can differentiate their products and how much they need to advertise. For example, in a perfect competition market, firms cannot differentiate their products, and price competition is the only option. On the other hand, in an oligopoly market, firms can differentiate their products, and pricing will depend on their level of product differentiation and how much they decide to advertise.

The Particular Type of Competition Dramatically Influences the Range of Price