Before initiating a price cut, the firm considering such a move should assess the likelihood and consequences of a price war.

Name: Before initiating a price cut, the firm considering such a move should assess the likelihood and consequences of a price war.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is because a price cut by one firm may trigger a response from competitors, leading to a price war that could harm all firms involved. Therefore, it is important to consider the potential consequences before making a price cut.

Before Initiating a Price Cut, the Firm Considering Such a Move