Asked by Herantha Wickramasekera on May 01, 2024
Verified
The number of competitors and their proximity influences what a small business owner can charge because the competition represents ______.
A) substitute choices to the customer
B) a better product for the consumer
C) better quality as perceived by the consumer
D) less expensive products
Substitute Choices
Options available that can replace or serve as alternatives to others, usually in the context of consumer goods or services.
Small Business Owner
An individual who owns and operates a business that is smaller in scale in terms of revenues, employees, and operations.
- Assess the role of competition in pricing decisions.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
A
Explanation :
The competition represents substitute choices to the customer, meaning customers have alternative options to consider when making a purchase. This influences what a small business owner can charge, as they must remain competitive with these alternatives to attract and retain customers.
Learning Objectives
- Assess the role of competition in pricing decisions.