The condition whereby firms aggressively undercut one another on price is known as

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Price warring is when firms aggressively undercut one another on price, often leading to a price war and a race to the bottom in terms of pricing. Collusion is when firms work together to control prices and reduce output to increase profits. Perfect competition is a market structure characterized by a large number of small firms, homogeneous products, and free entry and exit. Profit sharing is a compensation system where employees receive a share of the company's profits. Price leadership is when one firm sets the price and other firms in the industry follow suit.

The Condition Whereby Firms Aggressively Undercut One Another on Price