Merv's hardware, a small family-owned store in middletown, sells a 100-pack of garnet sandpaper for $35
the home shoppe, a large retail hardware chain in neighboring morristown, sells the same product for $29
based on this scenario, what would you expect merv's immediate response to be?
a
merv will remove his advertisements and rely on word of mouth.
b
merv will reduce his price to respond to the price competition from the homeshoppe.
c
the homeshoppe will initiate non-price competition with merv.
d
the homeshoppe will raise its price to respond to the price compet