An online movie streaming service charges $14.99 per month for its basic package. However, when a competitor introduced the same service at $13.99, the firm dropped its price to $13.99. The firm most likely made this price reduction in an attempt to
A) decrease revenue but increase profit.
B) increase profit by increasing revenue.
C) maintain market share.
D) decrease market share.
E) increase efficiency.

Question

Quizplus · Accepted Answer

The firm likely reduced its price to match the competitor's price to maintain its market share and prevent losing customers to the competitor.

An Online Movie Streaming Service Charges $14