Answered

How does Amazon's pricing strategy affect other retailers?

A. Retailers have their prices fixed.
B. Retailers do not match all competitor prices.
C. Retailers match all competitor prices.
D. Retailers use MR = MC to maximize their profits.



Answer :

GinnyAnswer

Final answer:

Amazon's pricing strategy influences other retailers by prompting price adjustments and competition.


Explanation:

Amazon's pricing strategy impacts other retailers significantly. By consistently offering lower prices and undercutting competitors, Amazon exerts pressure on other retailers to either match prices or find alternative strategies to remain competitive. This can lead to a pricing war among retailers and may force them to reassess their pricing strategies to stay relevant in the market.


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