There are many reasons why a firm might consider cutting its price.All of the following are among them EXCEPT .
A)a drive to gain market share and cut costs through volume
B)a drive to dominate the market through lower costs
C)a drive to reduce market share
D)excess capacity
E)falling demand in the face of strong price competition

Question

Quizplus · Accepted Answer

Option A, B, D, and E all involve a desire to increase sales, reduce costs, or gain a competitive advantage through lower prices. The only option that does not fit this pattern is C, a drive to reduce market share, which would not be a typical reason for a firm to cut its prices.

There Are Many Reasons Why a Firm Might Consider Cutting