How Can a Company Avoid the Trap of Competing Only

question 95

Multiple Choice

How can a company avoid the trap of competing only on price?

• A)by keeping the price at a level higher than the competitors
• B)by following a pricing strategy inconsistent with the market equilibrium
• C)by differentiating the products or services that it offers
• D)by selling at a price much lower than the competition

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Definitions:

Zoetrope

A motion toy consisting of a bowl-like apparatus with slots for viewers to peer through.

Daguerreotype

An early photographic process developed by Louis Daguerre in the 1830s, producing a silver image on a polished copper plate.

Latham Loop

In early projection systems, a set of sprockets that looped the film stock to keep it from breaking as a result of its own inertia.

Vitascope

The Vitascope is an early film projector first demonstrated in 1895, which played an important role in the commercialization of cinema by allowing longer films to be shown to larger audiences.