To Drive Its Competitors Out of a Certain Geographic Segment

question 40

Multiple Choice

To drive its competitors out of a certain geographic segment of its market, Drones Inc. sets the prices of its products below cost for the buyers in that area. This is

• A)price-fixing.
• B)smart marketing.
• C)predatory pricing.
• D)price discrimination.

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Definitions:

Short-Term Losses

Financial losses realized on the sale or exchange of assets held for a short period, typically less than one year.

Supply Chain Risk

The potential for financial, operational, and reputational losses arising from vulnerabilities and disruptions in a company's supply chain.

Inflation Risk

The risk that the value of assets or income will be eroded as inflation diminishes the value of a country’s currency.

Firm-Based Risk

Refers to the potential for financial loss arising from factors unique to a specific company, such as management decisions, product demand, or operational efficiency.