Competitors are most likely to react to a price change when ________.
A) the firm has a weak value proposition
B) the firm enjoys a monopoly
C) there are few competing firms
D) the product is heterogeneous
E) buyers have limited information

Question

Quizplus · Accepted Answer

Competitors are more likely to react to a price change when there are few competing firms because in a highly competitive environment, price changes are expected and may not necessarily trigger a competitive response. However, in a market with few competitors, price changes can have a significant impact on market share and profitability, leading to a more immediate and aggressive reaction from competitors.

Competitors Are Most Likely to React to a Price Change