Final answer:
Goods or services well suited for price competition include generic groceries and basic apparel due to minimal product differentiation. Price competition leads firms to focus on offering the lowest possible prices to attract customers, especially in industries like airlines and electronics.
Step-by-step explanation:
Two types of goods or services that lend themselves well to price competition are generic groceries and basic apparel. These industries have minimal product differentiation, leading to competition primarily on price. Within the grocery industry, items like sugar, flour, and bottled water are often seen as commodities where consumers are likely to choose the lowest-priced option. Similarly, for basic apparel, such as white t-shirts or socks, there is little differentiation, which creates a focus on price competitiveness.
Price competition is a market condition where multiple businesses offer similar products to the same customers, leading to a focus on lowering prices to attract consumers. This dynamic is evident in industries where product differentiation is minimal, and goods are viewed as interchangeable from various suppliers. Examples include airlines and electronics, where companies vigorously compete on price, sales, and discounts to draw customers.
Finally, it's worth noting that strong competition can also exist when the public sector competes with the private sector for the provision of goods and services, as in the case of public and private schools or hospitals. However, the intensity of competition might differ due to various factors, such as regulation and funding.