The Use of Differential Pricing Should

question 26

Multiple Choice

The use of differential pricing should

• A)decrease total profits for a firm.
• B)increase total profits for a firm.
• C)increase capacity for a firm.
• D)decrease capacity utilization for a firm.

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Definitions:

Operant Conditioning

A process of learning in which the dynamics of behavior are adjusted by assigning incentives or penalties.

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response tendency.

Variable-Ratio

A reinforcement schedule in which a response is rewarded after an unpredictable number of responses, commonly used in operant conditioning.

Fixed-Interval

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.