A firm might temporarily sell products below their cost in order to:
A)increase profits and revenues.
B)gain tax benefits and remove excesses.
C)raise cash or reduce market share costs.
D)match competition or generate cash flow.
E)appeal to a price-sensitive market.

Question

Quizplus · Accepted Answer

Firms may sell products below cost to match competition or generate cash flow, especially in competitive markets or during financial constraints.

A Firm Might Temporarily Sell Products Below Their Cost in Order