Explain the Concept of a Chose in Action

question 58

Essay

Explain the concept of a chose in action.

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Definitions:

Predatory Pricing

A strategy whereby a dominant company temporarily reduces prices to a level that is unprofitable for competitors in order to drive them out of the market.

Tying

A sales strategy where a seller requires buyers to purchase a secondary product or service together with the primary product.

Output Effect

The change in total revenue resulting from a change in quantity sold, holding price constant.

Price Effect

The price effect describes how changes in price influence the quantity demanded or supplied in the market.