Question

If two shops sell the same merchandise but one offers a higher level of service, the

service distinction is
O choice among substitute products.
local competition.
O price fixing
O nonprice competition,

Answer 1

Answer;

(C) Nonprice competition

Explanation;

Nonprice competition is a form of competition in which two or more producers use such factors as packaging, delivery, or customer service rather than price to increase demand for their products.

Firms will engage in non-price competition, despite the additional costs involved, because it is usually more profitable than selling for a lower price and avoids the risk of a price war.

For example, brand-name goods often sell more units than their generic counterparts, despite being more expensive.