Betty Harrington owns a floor covering firm. Her market research is telling her that she is taking business away from the large home improvement stores in her trade area. One thing that Betty is worried about is that the large stores might fight back by lowering their prices, which hurts everyone except the consumer. The day-to-day challenge of firm growth that this example is referring to is:

Question

Quizplus · Accepted Answer

The day-to-day challenge of firm growth in this example is price stability because Betty is worried about the large stores lowering their prices, which could lead to a price war and hurt everyone except the consumer. To stay competitive, Betty may need to consider adjusting her prices or finding ways to differentiate her products or services from those offered by the large stores.

Betty Harrington Owns a Floor Covering Firm