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.
Instructions:
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.