Advertisements
Advertisements
Question
Non-price competition is ______.
Options
Reducing prices
Competition based on prices
Spending money on advertisement, packaging, branding
Sale of unused stock
Advertisements
Solution
Non-price competition is spending money on advertisement, packaging, branding.
Explanation:
Non-price competition is when businesses compete by investing in tools other than pricing. Firms in this form of rivalry typically spend money on advertising, packaging and branding to attract new customers.
APPEARS IN
RELATED QUESTIONS
Discuss any two features of a monopolistically competitive market.
What is the shape of the demand curve faced by any monopoly firm? Support your answer with a diagram.
'A few big sellers' is a characteristic of ______.
There is no difference between perfect competition and pure competition.
Match the following and select the correct option.
| Column I | Column II | ||
| (i) | Perfectly elastic demand | (A) | Oligopoly |
| (ii) | Less elastic demand | (B) | Monopolistic competition |
| (iii) | More elastic demand | (C) | Perfect competition |
| (iv) | Indeterminate demand | (D) | Monopoly |
Give an example of oligopoly.
Give an example of monopsony.
What are selling costs?
In which form of market is the seller a price taker? Justify your answer.
In which type of market are firms interdependent and a few large firms dominate?
