Competitors are most likely to react to a price change when .
A)the product is uniform
B)buyers are not well informed about price differences
C)a large number of competitors are involved
D)the market has a pure monopoly
E)the buyers are not well informed about product features

Question

Quizplus · Accepted Answer

When the product is uniform, competitors are more likely to react to another competitor's price change because there are no significant differences between the products to justify differences in pricing. This means that a change in price by one competitor could result in lost sales for the others.

Competitors Are Most Likely to React to a Price Change