competitive market Flashcards
1
Q
What is a competitive market?
A
A competitive market is when businesses sell very similar products and services that are difficult to differentiate
2
Q
What are some of the decisions that a business may make in a highly competitive market?
A
improving efficiency
cutting costs
lowering its prices
3
Q
What are some things that a business may have to do when operating in a highly competitive market?
A
lower prices
accept lower profit margins
cut back on expenditure
monitor its competitors closely
