Phillip Esten operates a mail store in which he offers various services such as packaging items for shipment, delivering items to overnight services, and a fax machine. Esten has been charging $2.00 per page for the fax service, but a new store has opened in a nearby shopping center that is charging $1.00 per page. Esten lowers his price to $.50 per page, knowing this charge will not always cover his cost. Esten's actions:

constitute meeting the competition.

Step-by-step explanation:

Philip Esten action from the above scenario tries to meet up with the new competition he is encountering.

He operates a mail store where he renders services such as delivering of item overnight, and charging of fax service with each page for a fee of $2.00 for clients. He has a competition in the business environment where he now has direct competitors who offers the same service and product type to clients.

In this case, his competitors tend to attract more customers, both new and Esten old customers, because his competitors are rendering the same services at a cheaper fee to build a better brand of product / services for the store and buying the trust of customers now and for the future.

Esten with the knowledge of how business competition an works, reduces his price of charge to $.50 to attract more people or customers back to his store and tries to drive off the competitors, knowing quite well that this charges will not cover his cost.