Which of the Following Scenarios Is an Example of Predatory

question 52

Multiple Choice

Which of the following scenarios is an example of predatory pricing?

• A) Ceramic Corp sells its products below average total costs during off-peak seasons.
• B) Almeida flowers has arrived at an informal agreement with other sellers in the area to charge a very high selling price.
• C) Anton Inc., sells its products for $25 in the U.S, however it can sell the same product for double the price in its home country.
• D) Duyen Inc., is launching a new product and has decided to sell its product below its average variable costs until it drives competitors out of market.

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Definitions:

DRH

Differential reinforcement of high rates of behavior, a technique to increase the frequency of target behaviors by reinforcing them only when they occur at high rates.

DRL

Differential Reinforcement of Low Rates, a behavior modification technique used to encourage low rates of a particular behavior.

DRO Schedule

Differential Reinforcement of Other behavior, a procedure that reinforces an organism for displaying any behavior other than a target behavior.

Frustration Theory

A psychological theory suggesting that frustration, resulting from blocked goals, can lead to aggressive behavior.