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Sometimes Managers Price Their Products Too Low,resulting in a Loss

Question 98

Multiple Choice

Sometimes managers price their products too low,resulting in a loss of company profits.One reason this happens is that:


A) managers attempt to buy market share through aggressive pricing,but the cuts are quickly met by competitors,which wipe out any gain in market share
B) consumers tend to equate lower prices with low-quality goods,and they are never able to regain that lost market share
C) price-skimming strategies only work in the short-term,and always eventually result in lower profits
D) most managers simply lack good business sense,especially in regard to finances
E) all of the above are reasons

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