A company which charges a lower price than may be indicated by economic analysis to gain a foothold in the market is practicing
A) price skimming.
B) psychological pricing.
C) penetration pricing.
D) prestige pricing.
C
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Happy Campers wants to prevent Campers R Us from entering the camping market. If Happy Campers expands its capacity, the expansion can lead to all of the following except which one?
A) lower Campers R Us' profit from entering the market B) increase Happy Campers' marginal cost C) increase Happy Campers' profit-maximizing quantity D) lower Happy Campers' profit-maximizing price
If two firms operate in a market that is characterized as being a Prisoner's Dilemma, and the two strategies given them are to restrict output or expand output, which of the following strategy pairs would represent the cooperative solution in a duopoly for firm 1 and firm 2, and firm 1 given first in each pair?
a. {expand output, restrict output} b. {restrict output, expand output} c. {restrict output, restrict output} d. {expand output, expand output}
The increase in output that is generated by an additional unit of input is called the:
A. input-output relationship. B. production function. C. resource product. D. marginal product.
Spontaneous order
What will be an ideal response?