Firms in direct competition can take which of the following actions?

Question

Quizplus · Accepted Answer

Firms in direct competition can take either an attacking strategy or a defensive strategy as a response. An attacking strategy involves actively competing in the market with aggressive marketing or innovation tactics. On the other hand, a defensive strategy involves protecting your market share with defensive pricing or other measures that maintain customer loyalty. Both these strategies are forms of attacks and responses in direct competition. Therefore, the correct answer is C.

Firms in Direct Competition Can Take Which of the Following