Final answer:
A sales associate should read about a competitor's price to be informed about market competition and understand how pricing can indicate quality, enabling them to better serve customers and maintain their company's competitiveness.
Step-by-step explanation:
A sales associate should read a flyer about a competitor's price to stay informed about the market landscape. This knowledge helps them understand what monopolistic competition their company is facing, as rival businesses might enter the market with better or cheaper products, which can reduce the sales associate's company's profits and even risk driving them out of business. Furthermore, knowing a competitor's price helps associates grasp consumer perceptions of value, as price can often act as a signal of quality to a buyer, especially when they are confronted with imperfect information.
If a sales associate is unaware of such dynamics, they risk being unable to effectively communicate the value of their own products or services compared to those of competitors. This could lead to a loss in sales, reduced profitability, or even loss of market share. Therefore, having a comprehensive understanding of competitor pricing and the implications of economic profit in a monopolistic competitive environment is essential for a sales associate.