If the Potential Responses of Competing Firms Are Likely to Be

question 73

Multiple Choice

If the potential responses of competing firms are likely to be very detrimental to the costs advantages of cost leaders, firms pursuing a cost-leadership competitive strategy should

• A) drop their prices below competitors' prices to increase overall economic performance through increased volumes of profitable sales.
• B) raise their prices above competitors, increasing overall economic performance through higher margins.
• C) focus on a specific niche market to avoid direct competition with aggressive competitors.
• D) set their prices equal to competitors' prices, sacrificing some market share for increased profit margins.

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Fraternal Twins

Siblings born at the same time who have developed from two separate eggs fertilized by different sperm, making them genetically distinct.

Identical Twins

Genetically identical siblings, conceived from a single fertilized egg that splits into two.

Extraversion

A personality trait typified by outgoingness, high energy, and positive emotions.

Religious Beliefs

Systems of faith and worship; the conviction and acceptance of certain spiritual truths, often involving a deity or deities.