21.2k views
3 votes
How is non-price competition used in an oligopoly?

2 Answers

2 votes

Answer:

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:

User Byron Gavras
by
8.0k points
4 votes

Answer:

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.

User Killrazor
by
8.4k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.