Question

Why is location a factor in non-price competition? Give an example on your answer.

Answer 1

The firms in an oligopoly can compete in price, but often non-price competition becomes the most important factor dominating the market.

Therefore, firms in monopolistic competition have a motive to try and improve their product differentiation and brand image.

Answer 2

Step-by-step explanation:

The firms in an oligopoly can compete in price, but often non-price competition becomes the most important factor dominating the market. ... Therefore, firms in monopolistic competition have a motive to try and improve their product differentiation and brand image.