Question

1. which of the following is an example of nonprice competition? a. reducing product quality to lower costs b. offering discounts and sales promotions c. increasing the products price to maximize profit d. advertising the unique features and benefits of a product 13. firms that engage in price competition primarily compete by: a. reducing the quantity supplied b. lowering their prices to attract customers. c. offering unique and differentiated products. d. focusing on non - price factors like branding and quality. in the market 14. what is a key difference between perfect competition and monopolistic competition in how they engage in price competition? a. firms in perfect competition cannot influence prices, while firms in monopolistic competition have some flexibility to set prices due to product differentiation. b. firms in monopolistic competition always lower their prices to match competitors, while firms in perfect competition can charge higher prices. c. firms in perfect competition engage in price competition by raising prices when demand increases, while firms in monopolistic competition focus solely on non - price competition. d. firms in monopolistic competition are forced to set prices below cost to attract customers, while firms in perfect competition charge higher prices to maximize profit. benchmark: ss.912.e.2.4: diagram and explain the problems that occur when

Explanation:

1. Non - price competition involves strategies other than price changes. Advertising unique product features is a non - price strategy. Reducing quality is not a typical competition strategy, discounts are price - related, and increasing price is price competition.
2. Price competition is mainly about lowering prices to attract customers. Reducing quantity supplied is not price competition, offering unique products is non - price competition, and focusing on non - price factors is non - price competition.
3. In perfect competition, firms are price - takers and cannot influence prices. In monopolistic competition, product differentiation gives firms some price - setting flexibility. Firms in monopolistic competition don't always lower prices to match, firms in perfect competition can't raise prices freely when demand increases, and firms in monopolistic competition don't focus solely on non - price competition and don't set prices below cost.

Answer:

1. D. Advertising the unique features and benefits of a product
2. B. Lowering their prices to attract customers.
3. A. Firms in perfect competition cannot influence prices, while firms in monopolistic competition have some flexibility to set prices due to product differentiation.