Question

A company claims that its products are better quality than other similar products. What type of competition is this?

Answer 1

Answer:

B) Nonprice

Explanation:

Usually, companies compete in the market through price. Thus, the company that provides a similar product at a lower price tends to gain a larger share of the market. However, there are also non-price competition mechanisms. This is common in markets whose competitive structure is an oligopoly (few firms provide similar products). In these cases, companies also compete according to the degree of product differentiation. For example, in the toothpaste market, companies compete by creating differentiated products such as whitening or sensitive toothpaste.

Answer 2

C. Supply I believe