Pizza Producers Charge One Price for a Single Pizza and Almost

question 353

Multiple Choice

Pizza producers charge one price for a single pizza and almost give away a second one.This is an example of

• A) monopoly.
• B) a barrier to entry.
• C) behavior that is not profit-maximizing.
• D) price discrimination.
• E) rent seeking.

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Definitions:

Price-Cutting

The practice of reducing prices, often below the normal value, to attract customers or undermine competitors.

Direct Competition

The scenario where businesses offer the same or similar products or services to the same customer base, competing directly for market share.

Sherman Act

An antitrust law enacted in the United States to prevent monopolistic practices and promote competition among businesses.

Per Se Violation

A legal principle whereby an action is considered illegal in itself, without the need to prove harm or intent.