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If One Firm in A(n)_______________ Cuts Prices,this Can Take Market

question 50

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If one firm in a(n) _______________ cuts prices,this can take market share away from its competitors,forcing them to respond with similar price cuts in order to retain their market share.


Definitions:

Price Range

The spectrum or extent between the highest and lowest prices of a commodity over a given period.

Shut Down Point

The point at which a company's revenue is exactly equal to its variable costs and it ceases operations to minimize losses.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, that sells goods or services in exchange for money.

Price

The sum of money anticipated, needed, or provided as compensation for something.

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