The Pricing Strategy in Which One Firm Is Allowed to Establish

question 56

Multiple Choice

The pricing strategy in which one firm is allowed to establish the market price for all firms in the market is called

• A)Price discrimination.
• B)Price leadership.
• C)The profit-maximizing rule.
• D)Marginal cost pricing.

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Definitions:

Stocks

Financial instruments that represent ownership in a company and signify a claim on part of the company's assets and earnings.

Long-Term Investor

An individual or entity that holds investments for an extended period, focusing on long-term performance rather than short-term gains.

Equity Mutual Fund

A type of mutual fund that invests primarily in stocks, aiming to generate returns through equity ownership in companies.

S&P 500

An American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.