When higher-priced competitors match lower prices of their competitors but have longer staying power because of deeper cash reserves, it leads to a(n) ________ trap.
A) low-quality
B) fragile-market-share
C) price war
D) escalator
E) shallow-pockets

Question

Quizplus · Accepted Answer

This situation is referred to as a "shallow-pockets" trap, where companies with more financial resources can sustain lower prices longer than their competitors, potentially driving them out of the market.

When Higher-Priced Competitors Match Lower Prices of Their Competitors but Have