If a Large Retailer Sold Numerous Items Below Cost with the Intention

question 132

Multiple Choice

If a large retailer sold numerous items below cost with the intention of punishing small competitors and gaining higher long-run profits by putting those competitors out of business, the retailer would be guilty of ________.

• A) price collusion
• B) price fixing
• C) predatory pricing
• D) competitive pricing
• E) penetration pricing

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Definitions:

Biological Needs

Fundamental requirements that serve to maintain the basic functioning and survival of an organism, including food, water, shelter, and air.

Shaping

A method of behavior training in which successive approximations of the desired behavior are reinforced until the exact behavior is achieved.

Negative Reinforcement

A behavior modification technique where an unpleasant or aversive stimulus is removed following a desired behavior, increasing the likelihood of that behavior being repeated.

Modelling

A method used in cognitive behavior therapy and social learning theory where individuals learn through observing and imitating others.