When Different Companies Sell Commodity Products That Consumers Perceive as Substitutable

question 76

Multiple Choice

When different companies sell commodity products that consumers perceive as substitutable, this is called:

• A)pure competition.
• B)price engagement.
• C)monopolistic competition.
• D)oligopolistic competition.
• E)noncompetitive marketing.

---

Definitions:

Price Increase

A rise in the cost of goods or services, which can be influenced by factors such as inflation, demand, or production costs.

Indifference Curve

A graph representing combinations of two goods that give a consumer equal satisfaction and utility.

Total Utility

Total utility is the total satisfaction or benefit a consumer receives from consuming a given total quantity of a good or service.

Indifference Map

A graph representing a set of indifference curves to illustrate consumer preferences for different combinations of goods, assuming equal satisfaction.