Changing prices to attract customers is most difficult in a:
- oligopoly market
- monopoly market
- purely competitive market
- monopolistically competitive market
Question & Answer
Сhanging prices to attract customers is most difficult in a
1 Answer
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- oligopoly market
In an oligopoly market, a few firms dominate the market, and they are very interdependent. Each firm must carefully consider the potential reactions of its competitors when changing prices. Price changes by one firm can lead to price wars, retaliation, or other strategic moves by competitors, making it difficult to change prices to attract customers without significant consequences.