Why Might a Firm Not Be Able to React Quickly

question 11

Multiple Choice

Why might a firm not be able to react quickly to competitors' pricing moves?

• A)Lags in detecting competitors' prices
• B)Infrequent interactions with competitors
• C)Ambiguities in identifying which firm among a group of firms in a market is cutting price
• D)Difficulties distinguishing drops in volume due to price cutting by rivals from drops in volume due to anticipated decreases in market demand
• E)All of the above

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Definitions:

Deliberate System

Refers to the cognitive process that is slow, rational, and involves conscious decision-making, contrasting with automatic, quick responses of the brain's intuitive system.

Deliberate Mind

Thinking that is conscious, intentional, and reasoned, as opposed to automatic and instinctive.

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates.

Gratification

Gratification is the pleasure or satisfaction obtained from achieving something desired or fulfilling a need.