Final answer:
A pencil company can maintain its competitiveness without altering prices by introducing pencils in new colors, thereby differentiating its products and appealing to niche markets.
Step-by-step explanation:
A pencil company can compete in the market without changing its prices by adopting strategies that focus on product differentiation. One such strategy is to start selling new products or variations of existing ones, such as making pencils in a new color. This could appeal to different market segments or niches that are interested in unique or personalized products. Unlike options such as spending more on production, opening a pencil store, or paying workers less, introducing new colors does not necessarily increase the average cost of production significantly and can be a simple way to stand out against competitors without impacting the price point. Additionally, offering products that are distinct can potentially capture the attention of consumers and may lead to increased brand loyalty and market share.