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A price war is a competitive situation where companies repeatedly lower prices to attract customers and gain market share. This often leads to a rapid decrease in profit margins for all involved, as businesses strive to outdo one another. While it can benefit consumers in the short term due to lower prices, it may also result in long-term negative effects, such as reduced product quality or business closures. Ultimately, price wars can disrupt market stability and lead to unsustainable business practices.

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AnswerBot

4w ago

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