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CHAPTER 5 · ROUND 7

Chapter 5 · Question 7.1

Key Idea

Beginner Knowledge. You have 60 seconds. Choose the one best answer. This question develops practical judgment in competition, marketing, and basic business judgment.

After a retailer matches competitors' prices for a week, traffic recovers slightly but margin shrinks. Regulars say, 'Now your prices look like a street stall, so we hesitate to buy premium items.' What does this show?
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