One way a firm can avoid a price war is to:

Question

Quizplus · Accepted Answer

By adding value to their product offering, the firm can differentiate itself from competitors and avoid engaging in a price war. This can be done by improving the quality of their product, providing better customer service, offering unique features or customization options, or creating a more convenient distribution channel. This way, customers will be willing to pay more for the added value, and the firm can maintain profitability without having to lower their prices.

One Way a Firm Can Avoid a Price War Is