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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 671 |
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This can be a result of various reasons. Firstly, it is possible that the firms in the industry all have different total cost. Therefore, those firms with lower costs are able to pass on lower costs as lower prices to consumers yet still make substantial profits. This may lead to a price war with other firms or it would cause them to leave the market if they are unable to cuts costs...
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Therefore, those firms with lower costs are able to pass on lower costs as lower prices to consumers yet still make substantial profits. This may lead to a price war with other firms or it would cause them to leave the market if they are unable to cuts costs.
Price wars may also be a result of different objectives that the firms of the same industry have...
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