Penetration pricing is a way to:
A. raise a rival's marginal cost.
B. gain a critical mass of customers.
C. increase a rival's fixed costs.
D. lower a rival's input costs.
Answer: B
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________ are financial assets that represent partial ownership of a corporation
A) Stocks B) Financial markets C) Bonds D) Certificates of deposit
If you have $1,000 in wealth and the price level increases by 20 percent, then
A) the $1,000 will buy fewer goods and services. B) the $1,000 dollars will buy 20 percent more goods and services. C) the real value of the $1,000 increases. D) you will be able to buy fewer goods, but the real value of those goods will increase.
The term "price setter" refers to a firm that faces a downward-sloping demand curve and must therefore set the combination of output and price that will maximize the firm's profits
Indicate whether the statement is true or false
An advantage of a swap over futures and options is that
A) they can be written for long periods. B) they are more liquid. C) they carry less default risk. D) there is no need to assess the creditworthiness of participants.