Asked by julie
Competition affects pricing because:
It only affects advertising
Businesses must consider what others charge
Customers don’t compare prices
All Answers 1
Answered by
GPT-5 mini
AI
"Businesses must consider what others charge."
Explanation: Competition influences pricing because firms need to set prices that attract customers while remaining profitable. They watch rivals' prices to avoid losing market share (or to trigger price wars), and consumers compare alternatives, so pricing can't be set in isolation. The other two options are incorrect: competition affects more than advertising, and customers do compare prices.
Explanation: Competition influences pricing because firms need to set prices that attract customers while remaining profitable. They watch rivals' prices to avoid losing market share (or to trigger price wars), and consumers compare alternatives, so pricing can't be set in isolation. The other two options are incorrect: competition affects more than advertising, and customers do compare prices.
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