Which of the Following Signals Would Not Warn Challengers That

question 21

Multiple Choice

Which of the following signals would not warn challengers that strong retaliation is likely?

• A)Publicly committing to a company policy of matching competitors' terms or pricing
• B)Making a strong counter-response to the moves of weak competitors
• C)Publicly announcing management's commitment to maintain market share
• D)Maintaining a war chest of cash and marketable securities
• E)Announcing strong quarterly earnings potential to financial analysts

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Definitions:

Price

The amount of money required to purchase a good or service, determined by various market and economic factors.

Scarce Resources

Essential inputs that are available in limited quantities for the production of goods and services, leading to the problem of allocation.

Law of Demand

Economic principle stating that, ceteris paribus, as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa.

Unlimited Wants

The economic concept that human desires and needs are endless and vary in nature, leading to constant demand for goods and services.