There are several reasons why entrepreneurs might choose to employ price undercutting:
1. Market Penetration: New entrants in a market may use price undercutting to quickly attract customers and establish a presence. 2. Increase Sales Volume: Lower prices can lead to higher sales volume, which might compensate for the reduced profit margin. 3. Disrupt Competitors: Aggressively lowering prices can disrupt competitors' business models and potentially drive them out of the market.