A Coffee Shop Chain Opens Across the Street from a Locally-Owned

question 43

Multiple Choice

A coffee shop chain opens across the street from a locally-owned coffee shop.The base expenses for coffee and pastries are similar.However, the chain has corporate backing for support and therefore makes a decision to radically lower prices.Thus, it succeeds in attracting customers to its facility and eventually drives the competition out of business.This is an example of:

• A)price fixing.
• B)price discrimination.
• C)predatory pricing.
• D)referral selling.
• E)resale price maintenance.

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Definitions:

Stimulus Motive

An internal or external factor that incites a psychological or behavioral response without the necessity of learning.

Maze

A complex network of paths or passages through which one must find a way, often used in psychology experiments to test spatial navigation and memory.

Environment

Refers to the surroundings or conditions in which a person, animal, or plant lives or operates.

Sex Partners

Sex partners refer to individuals who engage in sexual activity with one another.