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son4ous [18]
3 years ago
6

"Competition in quality and service may be just as effective as price competition in giving buyers more for their money." Do you

agree? Explain why monopolistically competitive firms frequently prefer non-price competition to price competition.
Business
1 answer:
posledela3 years ago
7 0

Answer:

Yes, I agree that Competition in quality and service may be just as effective as price competition in giving buyers more for their money.

Explanation:

Price competition is one of many ways that a product or service can compete in the marketplace with consumers choosing affordability over quality. Consumers make purchases mostly on the basis of which is cheaper.

Competitive pricing is used more by businesses selling similar products, since services can vary from business to business, while the attributes of a product remain similar.

monopolistically competitive firms such as hotels frequently prefer non-price competition because they do not want consumers to choose affordability over quality which is usually more expensive.

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The other methods have their limitation. The payback period does not take into account the entire lifetime but rather stops as soon as the project pays back and the other two do not take into account the timing of the cashflows.

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$2,400 Favourable

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