The Introductory Price for the Nintendo Gamecube Video Game Console

question 38

Multiple Choice

The introductory price for the Nintendo Gamecube video game console was $100 lower than the list price of Xbox and Playstation 2, its only two competitors. Given this information, you can assume Nintendo used which type of policy for its Gamecube?

• A)penetration pricing
• B)flexible pricing
• C)competitive skimming
• D)price sensitive skimming

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Definitions:

Competitive Markets

Markets in which there are many buyers and sellers so that each has a negligible impact on the market price.

Constitutional Reform

The process of formally changing or amending the constitution of a nation or state to address legal, structural, or functional aspects.

Special Interest Effect

The phenomenon where policy decisions are disproportionately influenced by small, organized groups at the expense of the larger public's interest.

Government Failure

Situations where government intervention in the economy creates inefficiency, leading to a misallocation of resources.