Competition: producers

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What is competition?

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Where different firms are trying to sell a similar product to a consumer

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How can firms compete?

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-Price -Marketing -Customer Service -Quality

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9 Terms

1
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What is competition?

Where different firms are trying to sell a similar product to a consumer

2
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How can firms compete?

-Price -Marketing -Customer Service -Quality

3
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How can firms compete with price?

Firms would lower their prices to meet competition prices/standards

This would increase the demand for their products

This means more profit for the firm and more customers.

4
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How can firms compete with marketing?

Promotes business & increases outreach and attention.

Consumers become aware of their product and more people will buy it.

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How can firms compete with quality?

Good quality products will increase the likelyness of consumers buying a good despite whatever the price may be.

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Why do producers compete?

-To enter a new market -Survive in a market -Make profit

7
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One adavantage of compettion is higher profits. How can producers obtain this.

By cutting cost of production and/or using efficient technology.

This depends as using technology can be expensive so costs may not fall. Not all producers will cut costs because they make high profits.

8
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One advantage of competition is innovation. How can this help a producer?

This helps firms stay ahead, stand out from competition, increases sales and allows them to supply consumers with new products.

Not all producers will be able to afford this.

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One advantage of competition is the sharing of ideas. How can this help a producers?

Helps firms improve their product

Companies may steal your ideas. Some producers aren’t easy to learn from and are secretive.