A Pricing Strategy Below Cost Is Often Claimed to Be

question 9

Multiple Choice

A pricing strategy below cost is often claimed to be ________, done to drive rivals out of business so that the firm can subsequently raise its price back up to the monopoly level.

• A)predatory
• B)fair
• C)ethical
• D)None of the above is correct.

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Definitions:

Marketers

Professionals involved in promoting, selling, and distributing a product or service.

Clothing

Textile items worn on the body, primarily designed for purposes such as protection, comfort, and social or cultural expression.

Cosmetics

Substances or products applied to the body, particularly the face, to enhance or alter appearance, often for beauty or grooming purposes.

Make-up Artist

A professional skilled in applying cosmetics and styling hair to enhance or alter an individual's appearance.