Which of the following statements is true regarding, Ask an Expert

Finance

Which of the following statements is true regarding initiating price cuts?

A. If faced with excess capacity, a firm should not cut its price.

B. When faced with falling demand, firms should not cut prices.

C. Firms never cut prices; they only raise them.

D. Cutting price has no effect on costs.

E. Cutting prices in an industry loaded with excess capacity may lead to price wars.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92288085

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