Question

While determining price under the extent of competition factor, which aspects of competitors must be considered?

Options

• Competitors' prices, quality, and features

• Competitors' employee strength only

• Competitors' office locations

• Competitors' ownership and history

Answer 1

When assessing the extent of competition, a firm must consider competitors' prices, quality, and features. These attributes determine how a firm's own product and price must be positioned relative to rival offerings.