What effect does competition have on market price?

A. The prices of goods sold in competitive markets will tend to remain constant or change only slowly.

B. Firms in competitive markets will charge the same prices for the same product due to brand loyalties.

C. Firms in a noncompetitive market will not have a significant impact on the market price.

D. Firms in markets that are not perfectly competitive will charge the same prices for the same product to win customers from competitors.

E. The actions of a single firm in a competitive market will n

Question

Nash Calhoun

Business

11 November, 04:58

What effect does competition have on market price?

A. The prices of goods sold in competitive markets will tend to remain constant or change only slowly.

B. Firms in competitive markets will charge the same prices for the same product due to brand loyalties.

C. Firms in a noncompetitive market will not have a significant impact on the market price.

D. Firms in markets that are not perfectly competitive will charge the same prices for the same product to win customers from competitors.

E. The actions of a single firm in a competitive market will n

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Answers (1)

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Mya · Answer 1

The prices of goods sold in competitive markets will tend to remain constant or change only slowly.

Option A

Explanation:

For a business profit is the main motivation for which a pricing strategy has to be adopted to compete in the market for the similar product. Actually competition on market pricing will benefit the customer to get a quality product at a lower price.

The most important advantage of competitive pricing is it will give you control over the competition. Another benefit of competitive market pricing is it will lead you into innovative marketing practices to cover a wide range of customers in a particular product segment.