Question

Which of the following is an example of competitive parity? A firm provides wall clocks that its consumers value more than other wall clocks. A firm sells wall clocks at a lower price than its competitors. A firm produces a similar number of wall clocks at a similar cost as its competitors. A firm manufactures higher-quality wall clocks than its competitors.

Answer 1

Answer:

A firm produces a similar number of wall clocks at a similar cost as its competitors.

Explanation:

Competitive parity, as the name implies, is a situation in which a firm has a similar good or service to that of its competitors. These similarities can manifest in quality, cost, or both.

Im this case, if a firm produces a similar quantity of wall clocks, and sells them at a similar price, then, this firm has a competitive parity with its competitors.