Why Doesn't a Competitive Firm Reduce Its Price Below the Industry

question 192

Essay

Why doesn't a competitive firm reduce its price below the industry price to increase sales?

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Definitions:

Internal Factors

Elements within an organization that can influence its operations, including its personnel, culture, and internal processes.

External Factors

Elements outside of an individual's or organization's control that can influence outcomes, such as economic conditions, societal trends, or technological changes.

Consistency

The quality of achieving a level of performance or behavior that does not vary greatly in quality over time.

Consistency

denotes the attribute of being uniform, stable, and unchanging over a period of time.