There are many reasons why a firm might consider cutting its price.All of the following are among them EXCEPT ________.
A) excess capacity
B) falling demand in the face of strong price competition
C) a drive to dominate the market through lower costs
D) a drive to reduce market share
E) a drive to gain market share and cut costs through volume

Question

Quizplus · Accepted Answer

A firm would not cut its prices with a drive to reduce its market share. Cutting prices would likely result in an increase in market share, not a decrease. Thus, option D is not a reason why a firm might consider cutting its price.

There Are Many Reasons Why a Firm Might Consider Cutting