In general,entrepreneurs should avoid head-to-head price competition with other firms that can more easily achieve lower prices through lower cost structures.

Question

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If a firm tries to engage in head-to-head price competition with other firms that have lower cost structures, it can lead to a race to the bottom in terms of price and profit margins. Instead, entrepreneurs should focus on differentiating their products and services or finding a niche market where they can provide unique value to their customers.

In General,entrepreneurs Should Avoid Head-To-Head Price Competition with Other Firms