Questions a Company Should Consider If a Competitor Initiates a Price

question 31

Multiple Choice

Questions a company should consider if a competitor initiates a price change include all of the following EXCEPT ________.

• A) "Are other competitors going to respond?"
• B) "What will happen to the company's market share if it does not respond?"
• C) "Is the price change temporary or permanent?"
• D) "Why did the competitor change the price?"
• E) "How can we improve our product?"

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Definitions:

Capitalism

An economic system based on private ownership of the means of production and their operation for profit, characterized by a free market and open competition.

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Diffusion

The process by which an innovation is communicated through certain channels over time among the participants in a social system.