Diagnostic Misconceptions - Competition

Test yourself on Diagnostic Misconceptions - Competition

• What are the possible impacts of competition for a business?

• A clothes retailer is likely to locate in a shopping centre with lots of nearby competitors. Why do clothes retailers locate in places where there is a lot of competition?

• A clothes retailer is likely to locate in a shopping centre with lots of nearby competitors. What is a potential negative effect of a clothes retailer being in a shopping centre?

• Why might two competitors entering a new market be better for both firms than each of them entering the market alone?