Question

Sometimes reactions to prices in oligopolistic markets can result in _________, which occurs when two or more firms compete primarily by lowering their prices.A. a recessionB. a price warC. a lawsuitD. a profit-oriented strategyE. a competitor-oriented strategy

Answer 1

Answer:

B. a price war

Explanation:

A price war -

It is the type of competition between the company selling the similar type of product , or rival companies who tries to reduce the price of the product strategizing in a way to apprehend the wider area of the market , is known as a price war .

Reduction of the price of any goods or commodity is considered to be one of the best method to increase its market share ,

because as soon as the price of any good decreases , the sales automatically increases , as the consumers are always in search of some discounts and good deals .

A price war can be short term , as well as long term .