Competitive price increases are more likely to be followed by a company when _______.
A)falling cost levels occur
B)excess supply exist
C)build or hold objective exist
D)rising cost levels occur

Question

Quizplus · Accepted Answer

When a company experiences rising cost levels, they may need to increase their prices in order to maintain their profit margins. This may be especially necessary if they have already implemented cost-cutting measures and are still struggling to remain profitable. Therefore, a competitive price increase is more likely to be followed by a company when rising cost levels occur.

Competitive Price Increases Are More Likely to Be Followed by a Company