Firms that must split the market do so by holding neither a price nor a distance advantage over their competitor.
Understand the Problem
The question is asking what conditions firms must meet in order to successfully split the market among themselves. It presents multiple-choice options indicating various strategies regarding pricing and distance advantages over competitors.
Answer
by holding neither a price nor a distance advantage over their competitor.
The correct answer is by holding neither a price nor a distance advantage over their competitor.
Answer for screen readers
The correct answer is by holding neither a price nor a distance advantage over their competitor.
More Information
In this scenario, firms are positioned such that neither has an advantage, leading to an equal distribution of market share.
Tips
Ensure to analyze the competitive dynamics involved in the market. Lacking advantages often means competing at parity.
Sources
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