In order to avoid price competition that results in price wars, a firm may adopt all of the following to stay in business, EXCEPT ______.
A) add value to product
B) customer education
C) quality improvement
D) stop production

Question

Quizplus · Accepted Answer

The other options (adding value to product, customer education, and quality improvement) all focus on increasing the perceived value of the product, thereby allowing the company to charge a higher price and avoid engaging in price wars. Stopping production altogether is not a viable solution for staying in business.

In Order to Avoid Price Competition That Results in Price