Which of the following statements about price wars is True?
A) The number of price wars that have occurred since the 1990s has decreased significantly.
B) Price wars do not occur in the service industry.
C) Price wars can be harmful to a company that is financially weak.
D) In the short-run, consumers do not benefit from a price war.
E) Most businesses benefit from participation in price wars.

Question

Quizplus · Accepted Answer

Price wars can be particularly harmful to financially weak companies because they may not have the resources to sustain lower prices compared to stronger competitors. This can lead to significant financial strain or even force them out of the market.

Which of the Following Statements About Price Wars Is True