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In an oligopolistic market dominant firms control the price of products by punishing other firms that lower their price. One tool corporations use is the "Lowest Price Guarantee" this marketing slogan promises to match or beat competitors prices on comparable prices. This slogan punishes companies that would lower their prices by taking away their customers. If a company were to lower its price it would lose customers and thus profits. The large corporations can afford to take a price cut in the short-run in order to prevent competition and stabilize profit margins for the long-run.
What else can I help you with?
What is it called when prices keep falling because of panic?
credit crunch
What are the aims and objectives of public corporation?
1) Serve the community 2)Keep the prices low 3)Decrease the rate of unempployement 4)Produce more needs than goods.
How do falling prices effect supply?
The supply curve shifts to the left
What is the description of the stock exchange when prices are falling?
A bear market is the term used when stock market prices are going down.
A type of market when there is a prolonged period of Falling Stock Prices?
Bear Market
What is it called when prices keep falling because of panic?
credit crunch
Why crude oil prices falling?
Crude oil prices are falling because of oil shale drilling in the United States.
What did investors fear would happen beause of the Smoot-Hawley Tariff Act?
a decline in prices-apex
What are the lyrics to Lanny Wolfe I Keep Falling in Love With You?
I keep falling in love with jesus
How did investors fear as a result of the Smoot-Hawley tariff act?
Falling prices of goods is what investors feared would happen because of the Smoot-Hawley Tariff Act.
In 1790 Chesapeake planters saw falling prices for?
tobacco
Which of these are characteristics of a recession?
falling stock prices and increased unemployment
Why to have corporation?
A corporation shields one from personal liability. A corporation can keep ownership confidential. A corporation may have income tax advantages.
How does a monopoly increase a corporation profit?
by eliminating competition to control prices
What are the aims and objectives of public corporation?
1) Serve the community 2)Keep the prices low 3)Decrease the rate of unempployement 4)Produce more needs than goods.
How do you keep a perm that is falling out?
You keep it by using moose.
What is loyalty to a corporation?
Loyalty to a corporation could mean that the corporation gives incentives to keep its customers such as sales and coupons.
