Suppose You Buy an IPod for $100

question 88

True/False

Suppose you buy an iPod for $100. If your consumer surplus is $30, your willingness to pay is $70.

---

Definitions:

Predatory Pricing

The practice of selling goods or services at a lower price than the cost to produce them to eliminate competition and establish market dominance.

Product Life Cycle

The stages a product goes through from development to withdrawal from the market, including introduction, growth, maturity, and decline.

Online Businesses

Companies that operate primarily on the internet, offering goods, services, or information to a global audience.

Predatory Pricing

A pricing strategy where a product is sold at a very low price with the intent to drive competitors out of the market.