strategic effect of the firm’s action
for the following scenarios, state whether the strategic effect of the firm’s action will cause competitors
to behave more or less aggressively, and why.
a. sleep country USA announces that it will beat any competitor’s advertised price by 5%.
b. Termite Woods, a local, new home development, unexpectedly announces that it will decrease by 50% the
number of homes it had planned to build in the coming year.
c. Used car dealership Roach Motors announces a 25% price cut on its entire stock.
answer the question separately.
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