Gillette Introduced Its Mach 3 Razor at a Very Low

question 34

Multiple Choice

Gillette introduced its Mach 3 razor at a very low price to encourage more consumers to purchase it and to discourage competition. This is an example of _____ pricing.

• A) penetration
• B) cost-plus
• C) going-rate
• D) break-even

Recognize how economic structures and policies affect productivity and living standards.

Understand the relationship between capital deepening and economic growth.

Understand the concept of productivity growth and its impact on long-term economic growth.

Calculate and interpret output per capita.

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Definitions:

Measure Of Value

A standard of value that allows the worth of various goods and services to be compared; often associated with money as a common denominator for value comparison.

Medium Of Exchange

An intermediary instrument used to facilitate the sale, purchase, or trade of goods between parties.

Liquidity Trap

A condition in which interest rates are low and savings rates are high, rendering monetary policy ineffective in stimulating economic growth.

John Maynard Keynes

A British economist whose theories, known as Keynesian economics, had a major impact on modern economic and political theory as well as on fiscal policies of governments.