Only two companies manufacture Product A. The finished product is identical regardless of which company manufactures it. The cost to manufacture Product A is US $1, and the selling price is US $2. One company considers reducing the price to achieve 100c’% market share but fears the other company will respond by further reducing the price. Such a scenario would involve a:
A. No-win strategy.
B. Dual-win strategy.
C. One win-one lose strategy.
D. Neutral strategy.
Answer:A
Only two companies manufacture Product A. The finished product is identical regardless of which company manufactures it. The cost to manufacture Product A is US $1, and the selling price is US $2. One company considers reducing the price to achieve 100c’% market share but fears the other company will respond by further reducing the price. Such a scenario would involve a:
A. No-win strategy. B. Dual-win strategy. C. One win-one lose strategy. D. Neutral strategy.