Which of the Following Is True of Competitive Parity

Multiple Choice

Which of the following is true of competitive parity?

A) It assumes the same percentage used in the past, or by competitors, is still appropriate for the firm.
B) It does not take into account new plans (e.g., to introduce a new line of products in the current year) .
C) It does not allow firms to exploit the unique opportunities or problems they confront in a market.
D) It assumes communication expenses do not stimulate sales and profit.
E) If all competitors use this method to set communication budgets, their market shares will stay increase over time.