If Canon Camera Company follows a high-price, high-margin strategy, what will competitors most likely do?
A)They will go out of business.
B)They will want to compete by undercutting Canon's price.
C)They will advertise less.
D)They will unbundle their products.
E)They will use market-skimming pricing.

Question

Quizplus · Accepted Answer

Competitors are likely to try to undercut Canon's price if Canon follows a high-price, high-margin strategy. This is because they may see an opportunity to gain market share by offering a lower-priced alternative.

If Canon Camera Company Follows a High-Price, High-Margin Strategy, What