A strategy of holding prices low in order to increase global market share and attain greater scale economies rather than raising prices to reflect the higher perceived value of the product could increase the firm's rate of profit growth even further.

Question

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Such a strategy could increase the firm's rate of profit growth even further,since consumers will be attracted by prices that are low relative to value.The strategy might also increase profitability if the scale economies that result from market share gains are substantial.

A Strategy of Holding Prices Low in Order to Increase