When the price of a good rises, consumers buy a smaller quantity because of the substitution effect and the income effect. A change in the relative prices of goods results in change in consumption of that goods and that is denoted as the substitution effect. T<span>he change in purchasing power on the other hand which also result in change in consumption is referred to as the income effect.</span>
When you have a monopoly you have a product or service on the market with no competition. On the flip side, in a pure or perfect competition there are various competitors selling the same product or service as you. The main difference between these two are that a monopoly involves no competition at all while a pure competition involves a high level of competition. (the first choice)
The second choice is incorrect because it is harder to establish a product in a pure competition market because you are competing with other companies.
The third choice is incorrect because a monopoly refers to a company with a product or service and no competition whereas a pure competition refers to one with the same products or services.
The forth choice is incorrect because they can be present in various economy structures.
Answer:
Need to come up with a sustainable competitive advantage that draws in customers and produces a competitive edge over rivals.
Explanation:
The main objective of every company is to earn profits and grow in the market. But to attain that objective company needs to formulate and implement some business strategies which shall provide them the edge to success.
The management has the duty to run the company with the resources available and optimise them at their best.
To attain maximum profit the management shall formulate a strategy that shall provide the customers with maximum benefits with the product, and the business an extra edge to market share so that the competitors fall behind and the business gains maximum reach.
Answer: My answer is in the photo below. Hope it helps.
