Which of the Following Reduces Price Competition

question 9

Multiple Choice

Which of the following reduces price competition?

• A)Increasing the number of competitors.
• B)Increasing the number of substituting offers.
• C)Wider distribution of competitor and/or substitution offers.
• D)High switching costs for consumers.
• E)Increasing surplus capacity in the industry.

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Definitions:

Risk

The potential for losing something of value or the chance of an action leading to an undesirable outcome.

Financial Statements

Compiled reports that show a company's financial health, including balance sheet, income statement, and cash flow statement, among others.

Balance Sheet

A financial statement that gives a snapshot of a company’s financial condition at a specific time, detailing assets, liabilities, and shareholders' equity.

Income Statement

A financial document that presents a company's revenues, expenses, and profit over a specific period, typically a quarter or year.