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What is non-price competition? - Economics

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Question

What is non-price competition?

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Solution

Non-price competition refers to a market situation, especially under imperfect competition, where firms try to gain market share not by lowering the price of their products but by using other strategies. These may include spending large amounts on advertising, developing attractive packaging, promoting brand names, and offering special prizes or schemes. Firms avoid price cuts and instead focus on differentiating their products to attract customers.

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Chapter 15: Price Output Determination Under Monopolistic Competition and Oligopoly - TEST QUESTIONS [Page 15.26]

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R. K. Lekhi and P. K. Dhar Economics [English] Class 12 ISC
Chapter 15 Price Output Determination Under Monopolistic Competition and Oligopoly
TEST QUESTIONS | Q A. 8. | Page 15.26
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