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Why is competition a dynamic process rather than only a battle over price?
A
Dynamic rivalry - firms improve products, cut costs and raise service quality over time.
B
Static rivalry - firms preserve products, maintain costs and hold service quality constant over time.
C
Market sharing - firms divide customers, increase costs and reduce service quality over time.
D
Price leadership - firms follow one market leader’s prices and avoid service changes over time.
Card 1 of 21
1.5.8 The dynamics of competition and competitive market processes Flashcards
21 flashcards on AQA A Level Economics 1.5.8 The dynamics of competition and competitive market processes: the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3.