Negative market feedback refers to a tendency for
A) one or two firms in an oligopolistic industry to respond to price decreases by initiating efforts to engage in price leadership.
B) a particular product to fall out of favor with additional consumers because other consumers have stopped purchasing the product.
C) the dominant firm in an oligopolistic industry to react to competing firms' price increases by decreasing the price of its own product.
D) price wars to break out in oligopolistic industries in which firms produce products possessing characteristics that make them prone to network effects.

Question

Quizplus · Accepted Answer

Negative market feedback refers to when a particular product falls out of favor with consumers because other consumers have stopped purchasing the product. This can have a snowball effect, leading to a decline in demand and ultimately causing the product to be taken off the market.

Negative Market Feedback Refers to a Tendency for