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acca f1 doubt

Forums › ACCA Forums › ACCA BT Business and Technology Forums › acca f1 doubt

  • This topic has 0 replies, 1 voice, and was last updated 8 years ago by sathwika.
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  • October 1, 2017 at 4:56 pm #409136
    sathwika
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    • Topics: 4
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    • ☆

    under competitive rivalry in porters five forces analysis the following point was given:
    where the high fixed costs are involved companies will cut prices to marginal cost levels to protect volume,and drive weaker competitors out of the market.

    can anybody explain the meaning of the above point?

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