When a company purposefully makes pricing decisions to undercut one or more competitors and gain sales and net market share they are demonstrating a ___________________.

Question

Quizplus · Accepted Answer

A price war is a situation where a company lowers its prices to undercut competitors and gain sales and market share. This can lead to a cycle of price reductions by competitors, ultimately resulting in lowered profits for all involved.

When a Company Purposefully Makes Pricing Decisions to Undercut One