In which of the following situations would a company not set the prices of its products?
A) When the product is not easily differentiated from competing products
B) When the product is specially made for a customer
C) When there are few or no other producers capable of making a similar product
D) When the product can be effectively differentiated from others

Question

Quizplus · Accepted Answer

When a product is not easily differentiated from competing products, companies often find themselves in a price-taking position, where market prices are determined by the overall supply and demand rather than by individual companies. This is common in perfectly competitive markets where products are very similar and consumers can easily switch from one product to another without noticing significant differences.

In Which of the Following Situations Would a Company Not