When a Competitor Cuts Its Price,a Company Is Most Likely

question 135

Multiple Choice

When a competitor cuts its price,a company is most likely to decide to _ if it believes it will not lose much market share or would lose too much profit by cutting its own price.

• A)increase its marketing budget to raise the perceived value of the product
• B)maintain its current prices and profit margin
• C)increase its production costs to improve the quality of the product
• D)reduce its marketing costs
• E)stabilize its production costs

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Definitions:

Additional Costs

Expenses that are not initially projected or expected in the budget.

Natural Science

The branch of science that deals with the physical world, including physics, chemistry, geology, and biology.

Economic Analysis

Economic Analysis is the systematic approach to examining the allocation of resources, encompassing various methods to study economic systems, policies, and principles.

Poverty

is the state of having insufficient material possessions or income for a person's basic needs.