When Diversified Firms Use the Revenues from Profitable Businesses to Subsidize

question 44

Multiple Choice

When diversified firms use the revenues from profitable businesses to subsidize the operations of another business and then set the prices of the subsidized firm's products at a level that is below the subsidized business's cost to produce these items, this is known as ________ pricing.

• A) dynamic
• B) monopoly
• C) predatory
• D) beneficial

---

Definitions:

Extrapolated

The process of estimating beyond the original observation range by assuming that existing trends continue.

Multiple R

A statistic that represents the correlation between observed and predicted values of a dependent variable in a regression analysis, indicating model fit.

R Square

The ratio of the variance in the outcome variable that can be attributed to the influence of predictor variables in a regression analysis.

Dependent Variables

Variables in an experiment or model that are affected by changes in the independent variables, typically outcomes or results being measured.