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

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Definitions:

Trade

The act of buying, selling, or exchanging goods and services between people or countries.

Domestic Price

The price of a good or service within a country's borders.

Domestic Consumption

The total amount of goods and services consumed within a country's borders.

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually pay.