What Situation Occurs When a Large Incumbent Sets a Low

question 17

Multiple Choice

What situation occurs when a large incumbent sets a low price to drive smaller rivals from the market?

• A)Limit pricing
• B)Price leading
• C)Predatory pricing
• D)Quality pricing
• E)Capacity expansion

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Definitions:

Incongruity

A state of being out of harmony or lacking agreement between elements.

Privately Owned

Refers to assets, companies, or property owned by an individual or a corporation and not by the government or public.

Women Owned

Pertains to businesses or enterprises that are majority-owned by women.

Double Standard

The unfair application of different sets of principles for similar situations, or to different people in the same situation.