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Duplicate of Price and Non Price Competition Flashcards | StudBud
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Duplicate of Price and Non Price Competition
Duplicate of Price and Non Price Competition
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Basics of price and non price competition A.S 1.2 Economics #economics #price competition
Flashcards
10 cards
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Practice quiz
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Questions
10
Answers
1
What is price competition
When firms try to increase sales by advertising
When firms try to increase sales by cutting price
When firms try to increase sales by putting up the price
When firms try to increase sales by changing the product
2
What is non- price competition?
Trying to increase sales through rising prices
When firms try to increase sales by lowering the price
Trying to rise sales by methods other than lowering prices
Trying to increase sales through lowering prices
3
What is a disadvantage to producer of price competition
Receive a higher price
Helps clear shelf space
Can lead to a price war
Increase market share
4
What is a price war?
When two or more firms continually lower prices
When firms advertise against one another
When firms raise prices against one another
When two or more firms use competitions to get customers
5
What is an advantage to producers from non price competition?
lower market share
Receive a lower price
Avoids price wars
Costs may increase
6
What is Market share?
The proportion of sales of the good or service that is made
Share of prices
How many markets a producer gets
The amount of profit a producer gets
7
What is an advantage to consumers of non price competition
Wider range of products
Pay a lower price
Lack in service
Pay a higher price
8
What type of competition is this?
Non-price comp - product variation
Price competition
Non-price comp - product differentiation
9
What is a disadvantage of price competition to a consumer?
Quality might not be as good
Pay a lower price
Better range of goods available
Better service
10
What type of competition is this?
Price competition
Non price comp - Product Differentiation
Non price comp - Product Variation
