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      Question

      If competitors match every pricing move quickly,

      sustainable advantage must come from:
      A Price wars Correct Answer Incorrect Answer
      B Service innovation Correct Answer Incorrect Answer
      C Lower wages Correct Answer Incorrect Answer
      D Reduced marketing Correct Answer Incorrect Answer
      E Product elimination Correct Answer Incorrect Answer

      Solution

      When price parity exists, innovation and differentiation drive advantage. Why others are incorrect: Price wars reduce margins; Lower wages harm morale; Reduced marketing lowers visibility; Elimination reduces offerings. Banking Example: AI-based advisory tools.

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