Why might a firm not be able to react quickly to competitors' pricing moves?
A)Lags in detecting competitors' prices
B)Infrequent interactions with competitors
C)Ambiguities in identifying which firm among a group of firms in a market is cutting price
D)Difficulties distinguishing drops in volume due to price cutting by rivals from drops in volume due to anticipated decreases in market demand
E)All of the above

Question

Quizplus · Accepted Answer

All of the factors listed (lags in detecting competitors' prices, infrequent interactions with competitors, ambiguities in identifying which firm among a group of firms in a market is cutting price, and difficulties distinguishing drops in volume due to price cutting by rivals from drops in volume due to anticipated decreases in market demand) can contribute to a firm's inability to react quickly to competitors' pricing moves.

Why Might a Firm Not Be Able to React Quickly