Which of the Following Is a True of a Firm

question 44

Multiple Choice

Which of the following is a true of a firm pursuing an experience curve pricing strategy?

• A) Moving down the experience curve, the firm will be making substantial profits and have a cost advantage over its less-aggressive competitors.
• B) Vigorous price wars need to be launched in a market in an attempt to gain market dominance.
• C) Aggressive pricing in one market may elicit a response from rivals in another market.
• D) By using profits from one market, competitors can be driven out from another market by considerably lowering prices in that market.
• E) When competitors are numerous, consumers' bargaining power is weaker and price is less important as a competitive weapon.

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Definitions:

Intended Beneficiary

An individual or group for whom a contract is specifically made to benefit, granting them certain rights or benefits.

Creditor Beneficiary

A creditor beneficiary is a third party that benefits from a contract in which one party (the promisor) agrees to pay a debt owed to the beneficiary by the other party (promisee).

Incidental Beneficiary

A third party who might benefit from a contract between two other parties but does not have legal rights to enforce the contract terms.

Assignment

The transfer of rights, duties, or property from one party to another, often used in the context of contracts or real estate.