When DaimlerChrysler Introduced the PT Cruiser, Demand Was So Strong

question 74

Short Answer

When DaimlerChrysler introduced the PT Cruiser, demand was so strong that some dealers would sell one only if the customer was willing to pay several thousand dollars over the sticker price. This is an example of
effective business practice.
price gouging.
collusion.
profit maximization.
price lining.

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Definitions:

Rival Companies

Firms operating in the same industry that compete against each other for market share.

Monopoly Power

Monopoly Power is the ability of a monopoly firm to set and control prices due to the lack of competitive market forces.

Wheat Farm

A type of agricultural establishment primarily engaged in the cultivation of wheat.

Natural Monopoly

A scenario in which a single company is able to offer a product or service more cheaply than any possible rivals, usually as a result of benefiting from the economies of scale.