Question

In a competitive market, a furniture company decides to use cheaper materials to decrease production costs and pass on the savings. This is an example of___________.

Answer 1

Lowering the prices for customers

Step-by-step explanation:

Competitive market is the market where there are many producers are competing with each other in order to provide or offer the goods and services needed to the consumer or customers.

So, in this market, the furniture company plans to use the cheaper materials in order to decrease the production costs and also pass the savings. This would be an example of the lowering or decreasing the price for the customers, which in turn increase the sales of the business.