Acme corp. and spacely inc. are engaged in intense price competition in order to boost the market share of their widgets. this is best described as

a. elasticity of demand
b. price discrimination
c. non-price competition
d. bartering
e. a price war

Option E

Explanation: In simple words, it refers to the situation in which two rival companies in an industry cut their prices with the objective of cutting the others customers and gaining a higher market share.

        Generally it is performed for short term so that other firm could be demolished from the market but a company having strong reserves can perform it for a long term as well.

It is more evident in industries where the products of two companies are close substitutes of each other and there are few firs in the industry.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o