Chocolate Concoctions, a Maker of High End Chocolate Candies, Decided

question 2

Multiple Choice

Chocolate Concoctions, a maker of high end chocolate candies, decided to price its boxes of candies below the long-term market price.The decision was made to increase market share and discourage other businesses from entering the chocolate market.Chocolate Concoctions was implementing a:

• A)penetration pricing strategy.
• B)price lining strategy.
• C)skimming price strategy.
• D)variable pricing strategy.

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Definitions:

Formal Agreement

A legally binding contract or arrangement between two or more parties, often documented and enforceable by law.

Duopolists

Firms or entities within an oligopoly that specifically consist of only two producers or sellers in the market.

Collusion

A secret agreement or cooperation between parties, often competitors, to deceive or defraud others, typically in the context of fixing prices or manipulating market outcomes.

Cartel

An association of independent companies or organizations that agree to limit competition between themselves, often to control prices and production.