If a Business Decides to Reduce Its Prices Once in a While

question 338

Multiple Choice

If a business decides to reduce its prices once in a while on an unsystematic basis, it is using

• A) price reduction planning.
• B) random discounting.
• C) reference pricing.
• D) periodic discounting.
• E) penetration pricing.

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Definitions:

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a decrease in the per unit cost as output increases.

Trade Sector

The segment of the economy that involves the exchange of goods and services across borders.

Exports Plus Imports

The total value of all goods and services a country sells to and buys from other countries; a measure of a country's international trade.

Comparative Advantage

The capability of a nation, person, corporation, or area to create a product or service at a reduced opportunity cost compared to its rivals.