In ____, each competing firm is determined to sell at a price that is lower than the prices of its rivals, often regardless of whether that price covers the pertinent cost.
A)market skimming
B)a monopoly
C)a price war
D)perfect competition

Question

Quizplus · Accepted Answer

In a price war, each firm tries to undercut the prices of its competitors, leading to a race to the bottom in terms of pricing. This can be detrimental to all firms involved, as profit margins are sacrificed in order to gain market share.

In ____, Each Competing Firm Is Determined to Sell at a Price