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In 2006, Du Started Operations in the UAE as the Second

Question 20

Multiple Choice

In 2006, Du started operations in the UAE as the second telecom company and the main competitor to Etisalat, the already established telecom company in the region. Until now, the companies have not engaged in a price war as is expected of a duopoly. Why are the two companies actively avoiding a price war?


A) Because price wars would make consumers boycott the companies, bringing down profits.
B) Because price wars destroy value and that's not in the interest of either companies.
C) Because price wars require -talents neither of the companies have.
D) None of the above.

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