When a Competitor Cuts Its Price, a Company Might Decide

question 11

Essay

When a competitor cuts its price, a company might decide to ________ if it believes it will not lose much market share or would lose too much profit by cutting its own price.
reduce its production costs
reduce its marketing costs
maintain its current price and profit margin
increase its marketing budget to raise the perceived value of its product
increase its production costs to improve the quality of the product

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Definitions:

Neurotransmitter

Chemical substances in the nervous system that transmit signals across a synapse from one neuron to another.

Antagonist

A substance that blocks or inhibits the effects of a neurotransmitter or hormone.

Opiate

A group of drugs derived from opium, used for pain relief, but also associated with addiction and dependence.

Excitatory Messages

Neurological signals that increase the likelihood of a neuron firing and thus stimulate action in the nervous system.