Which of the Following Concerning Predatory Pricing Is True

question 67

Multiple Choice

Which of the following concerning predatory pricing is true?

• A) Predatory pricing involves charging different prices to different customers based on their willingness-to-pay.
• B) Predatory pricing involves raising prices very high so that most consumers are unable to purchase the product, though a few continue to do so, and the firm makes huge profits by having lower production costs.
• C) Predatory pricing is used to drive competitors out of the market.
• D) Predatory pricing permanently lowers the price in the market.

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Definitions:

Negative Punishment

A method in behavior modification that involves the removal of a desirable stimulus following unwanted behavior to decrease the likelihood of that behavior occurring again.

Positive Punishment

A concept in behavioral psychology where the addition of an unpleasant stimulus follows a behavior, aiming to decrease the likelihood of that behavior’s occurrence.

Negative Reinforcement

The removal of an aversive stimulus following a behavior, increasing the likelihood of that behavior being repeated.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.