A Designer Releases Her Fall Line of Handbags,including One That

Multiple Choice

A designer releases her fall line of handbags,including one that retails for $6,000.This bag is a limited edition;only 500 will be produced,and orders will only be accepted from clients who have previously purchased a handbag from the designer.They will be put on a waitlist for the handbag in the order in which they are received.
-How could lowering prices to capture a higher share of the market be a strategic advantage to a company?

A) Lowering prices will reduce the company's overall profits,whether they have the largest market share or not.
B) Lowering prices will allow a company to force its competitors to sell at a lower price that they can afford to,which will drive them into bankruptcy.
C) A company with the largest share of the market does not have to comply with the same safety regulations and production controls that other companies do.
D) A company with the largest share of the market is seen as the leader so customers think of it as the default and require less sales effort to close a sale.
E) A company with the largest share of the market can cut costs and raise prices without the public noticing or switching to competitors.