The Illegal Practice of Selling Below Costs with the Intention

question 105

Multiple Choice

The illegal practice of selling below costs with the intention of punishing a competitor by driving a competitor out of business is known as ________ pricing.

• A)penetration
• B)predatory
• C)dynamic
• D)deep discount
• E)skimming

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Definitions:

Cohesive

Referring to the property of an element or group to stay together tightly and function in a unified manner.

Groupthink

A psychological phenomenon in which the desire for harmony or conformity within a group results in an irrational or dysfunctional decision-making outcome.

Devil's Advocate

A role assumed by an individual or group in discussions or decision-making processes to challenge ideas and assumptions by presenting a contrary argument.

Asch Conformity Studies

A series of psychological experiments that demonstrated the extent to which an individual's own opinions are influenced by those of a majority group.