Which of the Following Is a True of a Firm

question 44

Multiple Choice

Which of the following is a true of a firm pursuing an experience curve pricing strategy?

• A) Moving down the experience curve, the firm will be making substantial profits and have a cost advantage over its less-aggressive competitors.
• B) Vigorous price wars need to be launched in a market in an attempt to gain market dominance.
• C) Aggressive pricing in one market may elicit a response from rivals in another market.
• D) By using profits from one market, competitors can be driven out from another market by considerably lowering prices in that market.
• E) When competitors are numerous, consumers' bargaining power is weaker and price is less important as a competitive weapon.

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