If a firm's objective is to obtain a larger share of the market, it will keep the price of its products at ____ levels so that ______ number of people are attracted to purchase the product.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Lower, Greater
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If a firm wants to capture a larger market share, it will adopt a penetration pricing strategy → keeping prices low.
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Lower prices attract a greater number of customers, increasing sales volume and market share.