Question
What is true about pricing in competitive, mature markets?
Multiple choice question.
Raising prices above the competition's prices leads to large sales gains.
It becomes easier for a company to differentiate from the competition.
Competition exerts deceasing influence on price.
Competition places downward pressure on prices and profit margins.
Multiple choice question.
Raising prices above the competition's prices leads to large sales gains.
It becomes easier for a company to differentiate from the competition.
Competition exerts deceasing influence on price.
Competition places downward pressure on prices and profit margins.
Answers
GPT-4o mini
In competitive, mature markets, the correct statement is:
**Competition places downward pressure on prices and profit margins.**
In such markets, many firms offer similar products or services, which tends to drive prices down as they compete for market share. This results in thinner profit margins for companies. The other options do not accurately reflect the dynamics of pricing in competitive, mature markets.
**Competition places downward pressure on prices and profit margins.**
In such markets, many firms offer similar products or services, which tends to drive prices down as they compete for market share. This results in thinner profit margins for companies. The other options do not accurately reflect the dynamics of pricing in competitive, mature markets.