When firms set prices similar to those of major competitors, they are following a strategy of
A)me-too pricing.
B)copycat pricing.
C)competitive parity.
D)market-broadening pricing.
E)industry-standard pricing.

Question

Quizplus · Accepted Answer

When firms set prices similar to those of major competitors, they are following a strategy of competitive parity. This means that they are trying to match the prices of their competitors to remain competitive in the market. This strategy is often used to avoid price wars and maintain market share.

When Firms Set Prices Similar to Those of Major Competitors