Suppose there exist only four in a market. Each wants to miximise its market shar and increase profits. An incompetent economic analyst advices one of the firms to reduce price to increase its sales. Would this be a correct measure to increase market share ? What alternative ways would you suggest to the firm to increase sales ?

Suppose there exist only four in a market. Each wants to miximise its

1.	Suppose there exist only four in a market. Each wants to miximise its market shar and increase profits. An incompetent economic analyst advices one of the firms to reduce price to increase its sales. Would this be a correct measure to increase market share ? What alternative ways would you suggest to the firm to increase sales ?
Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/since-644476" style="font-weight:bold;" target="_blank" title="Click to know more about SINCE">SINCE</a> the market from under <a href="https://interviewquestions.tuteehub.com/tag/consideration-929955" style="font-weight:bold;" target="_blank" title="Click to know more about CONSIDERATION">CONSIDERATION</a> is oligopoly, a reduction in <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> by one firm may lead to price war which would make all firms worse off. <br/> Sales can be increased by non price competition through advertising, discounts, free gifts etc.</body></html>