Betty Harrington owns a floor covering firm. Recently, 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 hurt everyone except the consumer. The day-to-day challenge of firm growth that this example is referring to is:

Question

Quizplus · Accepted Answer

Betty's concern about the large stores potentially lowering their prices indicates that she is facing a challenge of price stability. This means that she needs to find ways to maintain her prices while still remaining competitive, which can be a difficult balance to achieve. This is a common challenge for firms in competitive markets where pricing is a key factor in consumer decision-making.

Betty Harrington Owns a Floor Covering Firm