There Are Many Reasons Why a Firm Might Consider Cutting

question 117

Multiple Choice

There are many reasons why a firm might consider cutting its price.All of the following are among them EXCEPT ________.

• A) excess capacity
• B) falling demand in the face of strong price competition
• C) a drive to dominate the market through lower costs
• D) a drive to reduce market share
• E) a drive to gain market share and cut costs through volume

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Definitions:

Conditioned Response

The learned response to a previously neutral stimulus after it has been paired repeatedly with an unconditioned stimulus.

Conditional Reinforcement

The process through which a response becomes more likely or strengthened because it is followed by the delivery of a reinforcer dependent on meeting a certain condition.

Contingent Reflex

A reflex action that depends on specific conditions or stimuli to occur.

Stimulus Generalization

The process by which a conditioned response is triggered by stimuli similar to the original conditioned stimulus.