Question

why do companies engage in competitive pricing?
a to gain a bigger share of the market
b to increase their employee salaries
c to reduce their share of the market
d to prepare for bankruptcy

Explanation:

Competitive pricing is a strategy where companies set prices to compete with rivals. The main goal of this is typically to attract more customers, which in turn helps gain a larger portion of the market. Option B is incorrect as competitive pricing isn't directly for increasing employee salaries. Option C is wrong because companies don't use competitive pricing to reduce their market share. Option D is also incorrect as competitive pricing is for business growth, not preparing for bankruptcy.

Answer:

A. to gain a bigger share of the market