Final answer:
The best response for a sales associate when a customer asks for price matching and a refund is to politely explain the store's policy. Additionally, in a business context, strategy considerations are crucial when entering a market with a monopolist.
Step-by-step explanation:
When a customer calls about a cheaper price at a competitor and wants a price match and a refund, the sales associate's best response is to politely explain the store's price matching policy. This approach ensures that the customer feels heard and understood while addressing their request within the company's guidelines. Furthermore, before you, as a small firm's manager, decide to challenge a monopolist in the market by setting a lower price, consider the monopolist's potential reaction such as reducing their prices, improving their product, or other competitive actions to maintain their market position.