Firms pursuing related diversification to increase market power are attempting to decrease the price at which they sell their products to levels below the normal prices found in the market.

Question

Quizplus · Accepted Answer

Firms pursuing related diversification are attempting to increase market power by leveraging their existing resources, capabilities, and brands in new markets. This typically involves producing and selling similar or complementary products within a different market or industry. The goal is to increase revenue and profitability, not to decrease prices below market norms.

Firms Pursuing Related Diversification to Increase Market Power Are Attempting