As the Lowest Cost Producer in the Market, Your Firm

question 30

Multiple Choice

As the lowest cost producer in the market, your firm has decided to reduce the price of your product again by 10 percent. This price decline has the effect of driving a competitor out of the market and of attracting price sensitive shoppers to your brands. This is an example of what type of pricing strategy?

• A) experience curve
• B) activity-based
• C) target costing
• D) average
• E) predatory

---

Definitions:

Cries

Vocal expressions of distress, fear, or need, commonly produced by humans and many animal species.

Prejudice

A preconceived opinion or judgment towards people or groups without sufficient knowledge, factual basis, or experience.

Unfavorable Attitudes

Negative or adverse opinions, beliefs, or feelings toward an object, person, or situation.

Certain Groups

Specific segments of a population defined by characteristics such as age, gender, ethnicity, or interest.