What Is the Purpose of Loss-Leader Pricing

question 6

Multiple Choice

What is the purpose of loss-leader pricing?

• A) to gain market share
• B) to maximize profit
• C) to allow for future price increases
• D) to switch customers to new products

---

Definitions:

Output Energize

The process of activating an output device or circuit, thereby enabling it to perform its intended function, such as turning on a light or motor.

Input Energize

refers to the condition in electrical or electronic circuits where an input signal or power source is applied, activating a component or process.

Dividend

A portion of a company's earnings that is distributed to shareholders, typically in the form of cash or additional stock.

Interest Rate

Borrowers are subject to a charge, defined as a percentage of the principal, for the usage of assets from lenders.