Paper 2 · June 2019 · Market Structures
Which of the following is a form of non-price competition used by firms in an oligopoly?
Abranding and advertising in order to win customers away from rivals
Bselling ten everyday grocery items at fifty pence each for a limited period
Ccutting the shelf price of staple items such as bread, eggs and butter
Dmatching a rival chain's price reduction within a day of it being announced
Explanation
Non-price competition is any way of attracting custom that leaves the price alone: branding, advertising, packaging, loyalty cards, promotions and service. The other three all work through the price itself, which is why oligopolists often avoid them for fear of starting a price war.
Derived from ZIMSEC Economics 6073/2 Paper 2, June 2019, Q1