Question

How is non-price competition used in an oligopoly?

Answer 1

oligopoly firms are interested not in price wars but in non-price competition to boost sales. This is because of the fact that a cut in price, in all probabilities, will increase total revenue.

Step-by-step explanation:

Answer 2

Baumol treats explicitly the advertising form of non-price competition. Thus, oligopoly firms are interested not in price wars but in non-price competition to boost sales. ... This is because of the fact that a cut in price, in all probabilities, will increase total revenue.