4.5 The competitive process Flashcards
1
Q
What is the effect of diversification?
A
Diversification into different product areas will allow greater scope to increase revenues
2
Q
What are the effects of competition?
A
Competition tends to lead to lower prices and lead to a greater choice of products
3
Q
What do firms do in order to make themselves more competitive? (3)
A
Reduced costs of production
Improve quality
Better standards of service
