Price signaling in mature industries happens when:
A) the government intervenes to regulate prices of products.
B) companies decide to invest in slow-growing markets.
C) companies decide to sell its patents to generate revenue.
D) companies increase or decrease product prices to convey their intentions to other companies.
E) a company concentrates on expanding market share in its existing product markets.

Question

Quizplus · Accepted Answer

Price signaling in mature industries happens when companies increase or decrease product prices to convey their intentions to other companies. This is a way for companies to signal to their competitors whether they intend to compete aggressively or focus on profitability. This can also help companies gauge their competitors' strategies and adjust their own accordingly.

Price Signaling in Mature Industries Happens When