To Drive Its Competitors Out of a Certain Geographic Segment

question 40

Multiple Choice

To drive its competitors out of a certain geographic segment of its market, Drones Inc. sets the prices of its products below cost for the buyers in that area. This is

• A)price-fixing.
• B)smart marketing.
• C)predatory pricing.
• D)price discrimination.

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Definitions:

Harmony

A state of agreement, peacefulness, or concord between individuals or groups; also refers to a pleasing combination of musical notes.

Cognitive Dissonance

A psychological state that occurs when an individual holds two or more contradictory beliefs, ideas, or values at the same time, often leading to discomfort and a drive to reduce the inconsistency.

Social Pressure

The influence that is exerted by society or a social group on an individual, encouraging conformity to social norms or expectations.

Mass Killing

The intentional and indiscriminate murder of a large number of people by individuals, groups, or state agents.