In which market structures do firms engage in nonprice competition?
A) perfect competition and monopolistic competition
B) monopolistic competition and oligopoly
C) oligopoly and monopoly
D) perfect competition and monopoly

Question

Quizplus · Accepted Answer

Firms in monopolistic competition and oligopoly engage in nonprice competition as they try to differentiate their products through advertising, branding, packaging, and other marketing strategies. In perfect competition, firms are price takers without the ability to engage in nonprice competition, while in monopoly there is no need for nonprice competition as the firm has significant power over the market.

In Which Market Structures Do Firms Engage in Nonprice Competition