Use the Figure Below to Answer the Following Questions

question 132

Multiple Choice

Use the figure below to answer the following questions.

Figure 2.1.3
-Refer to the production possibilities frontier in Figure 2.1.3. The fact that less of X must be given up when moving from D to C than when moving from B to A indicates

• A)decreasing opportunity cost.
• B)increasing opportunity cost.
• C)comparative advantage in the production of X.
• D)the consequences of technological improvement.
• E)unemployed resources at D.

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Definitions:

Prestige Pricing

A pricing strategy where items are priced higher than normal to convey quality, exclusivity, or luxury to attract status-conscious consumers.

Below-market Pricing

The strategy of setting prices lower than the prevailing market rate to attract customers or gain market share.

Penetration Pricing

A marketing strategy where a product is priced lower than the competition to gain market share rapidly, with the potential to increase prices later.

Below-market Pricing

Setting the price of a product or service lower than the prevailing market rates to attract customers or gain market share.