When an Oligopoly Reduces Its Price with the Intent of Driving

question 9

Multiple Choice

When an oligopoly reduces its price with the intent of driving away its competitors, it is said to be engaging in

• A) price discrimination.
• B) pricing differentials.
• C) price fixing.
• D) predatory pricing.
• E) a price-tying agreement.

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Definitions:

Supply Chain Management

The oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer, aiming to streamline a business’s supply-side activities to maximize customer value and gain a competitive advantage in the marketplace.

Loss Incurred

Refers to a financial deficit that results from a business operation, transaction, or other activities.

Unsold Unit

A product unit that remains unsold after being offered to the market, representing a missed revenue opportunity.

Production Methods

Various approaches and techniques used in the creation of goods and services, including mass production, batch production, and custom production.