In a price war, each of multiple suppliers of highly competitive produ

Which of the following best completes the passage below?

In a price war, each of multiple suppliers of highly competitive products and services repeatedly lowers its price to avoid being undercut and thereby losing sales and customers to its competitors. Due to these competitive pressures, the companies involved generally reduce their prices far more than they otherwise would, even to the point where none of the companies is able to make a profit on sales. A price war is usually detrimental to all companies involved, who will profit from reasonable but higher costs, but at the same time a company cannot always afford to let a competitor lower price without matching or lowering beyond that price.

Assuming that none of the competitors can be knocked out of the market, it should be expected that _______________.

A. in a competitive market, each company will attempt to avoid a price war by setting prices low and being prepared to raise them as circumstances require

B. in a competitive market, each company will wish to avoid a price war but be prepared to be the first company to lower price

C. each company in a competitive market will attempt to signal to its competitors that does not want a price war but will not necessarily allow competitors to undercut its price

D. each company in a competitive market will attempt to signal to its competitors that does not want a price war at any cost, even if competitors undercut its price

E. each company in a competitive market will attempt to create an atmosphere of complete uncertainty as to whether it will lower prices, for example, by establishing discounts that are marketed as temporary but which may in effect be permanent