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:

Least-Cost

A principle or method of minimizing the costs of production or operation while achieving the desired output or quality.

Production Technique

Methods or processes used in the creation of goods or services, often focusing on increasing efficiency or quality.

Coordination Problem

Challenges that arise when parties involved in economic activity must align their plans and actions to effectively achieve their objectives.

Central Planning

An economic system where the government makes all decisions about the production and distribution of goods and services, often found in socialist economies.