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Which of the following is an example of non‑price competition in an oligopolistic market?

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Question

Which of the following is an example of non‑price competition in an oligopolistic market?

Options

  • Frequent price cuts to start a price war

  • Fixing a uniform price by law

  • Improving product quality and offering extra services

  • Reducing supply to raise price

MCQ
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Solution

Improving product quality and offering extra services

Explanation:

Oligopolistic firms usually keep prices rigid and instead compete using advertising, better quality, branding, packaging, and extra services or offers.

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