Predatory Pricing Occurs When a Firm

question 93

Multiple Choice

Predatory pricing occurs when a firm:

• A)reduces its prices in order to make itself more competitive
• B)reduces its prices temporarily to impose losses on any competition so as to force them out of the market
• C)exercises its monopoly power by raising its price
• D)sets the price on wildlife products made from predators like crocodiles or sharks

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Definitions:

Opportunity

A situation or condition that places an individual in a favorable position to achieve a desired outcome.

Negative Reinforcement

A type of operant conditioning that involves the removal of an unpleasant stimulus to increase the likelihood of a desired behavior.

Conditional Punishment

Rendering a consequence that reduces the likelihood of a behavior occurring in the future by associating it with an aversive outcome.

Primary Reinforcement

A naturally reinforcing stimulus, such as food or water, which fulfills a biological need.