When an Oligopoly Reduces Its Price with the Intent of Driving

question 109

Multiple Choice

When an oligopoly reduces its price with the intent of driving away its competitors,it is said to be engaging in

• A) pricing differential.
• B) predatory pricing.
• C) price fixing.
• D) a price-tying agreement.
• E) price discrimination.

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Definitions:

Product's Utility

The usefulness or functionality of a product in satisfying a consumer's need or want.

Unsafe Character

A term that may describe a person's disposition that poses a risk to themselves or others but is not widely used in a specific technical sense. (Assumed explanation as term is uncommon)

Substitute Product

A product that a consumer can purchase instead of another product due to similarities in function or utility, typically affecting consumer choices and market competition.

Junk Science

Unsubstantiated or pseudoscientific claims, theories, or data, often used to advance specific agendas or claims without rigorous methodology.