The competitor who cuts his price is fully aware of the impact on other
competitors and that they will try to match his price. He acts in the
knowledge that some of them will not be able to afford the cut, while he is,
and that he will eventually pick up their business. He is able to afford the
cut when and if his productive efficiency is greater than theirs, which lowers
his costs to a level they cannot match . . . . Thus price competition, under
capitalism, is the result of a contest of efficiency, competence, ability.