A firm adopting an aggressive pricing strategy is in danger when _______.
A)faced with competitors who are in a cartel
B)faced by a competitor who has huge resources and market share
C)they do not have a cost advantage
D)all of the above

Question

Quizplus · Accepted Answer

An aggressive pricing strategy involves setting prices lower than competitors to gain market share. However, if the firm does not have a cost advantage, they may not be able to sustain these lower prices and may end up losing money. A and B are also valid factors that could threaten a firm's success, but they are not directly related to the pricing strategy adopted.

A Firm Adopting an Aggressive Pricing Strategy Is in Danger