When a competitor cuts its price, a company might decide to ________ if it believes it will not lose much market share or would lose too much profit by cutting its own price.
A) reduce its production costs
B) reduce its marketing costs
C) maintain its current price and profit margin
D) increase its marketing budget to raise the perceived value of its product
E) increase its production costs to improve the quality of the product
Answer: C) maintain its current price and profit margin