Question

In an oligopoly situation, a wise marketing manager will probably set the firm's price level:

A. at the competitive level.

B. on a negotiated basis—that is, customer by customer.

C. above competitors' prices.

D. at least 10 percent below the price leader's price.

E. below competitors' prices.

Answer 1

Answer:

Letter A is correct. At the competitive level.

Explanation:

An oligopoly is a marketing structure that occurs when some companies come together to determine the supply of products or services.

In this type of market there is imperfect competition, where market control is exercised by few companies, capable of regulating the behaviors and market decisions of other companies.

Therefore in an oligopoly situation the ideal is that the price level of a company be defined at a competitive level, since the goods produced are homogeneous and the degree of differentiation occurs in the variables of service, quality, image and not so much in the variation of prices. price.