In markets that are characterized by products that are highly homogeneous, how should a firm react to a competitor's reduction in price?

In markets that are characterized by products that are highly homogeneous, how should a firm react to a competitor's reduction in price?


A) shrink the amount of the product available

B) substitute expensive materials or ingredients

C) reduce product features

D) reduce product services

E) augment the product


Answer: E) augment the product


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