Company a Uses a Pricing Approach Where the Initial Price

question 49

Multiple Choice

Company A uses a pricing approach where the initial price for a product is set high and then lowered, and Company B uses an approach where initial prices are set low in an effort to gain market share. What terms best describe these practices? $\begin{array} { | l | l | l | } \hline & \text { Company A } & \text { Company B } \\\hline 1 & \text { Predatory } & \text { Skimming } \\\hline 2 & \text { Penetration } & \text { Predatory } \\\hline 3 & \text { Skimming } & \text { Penetration } \\\hline 4 & \text { Skimming } & \text { Predatory } \\\hline 5 & \text { Predatory } & \text { Penetration } \\\hline\end{array}$

• A)1
• B)2
• C)3
• D)4
• E)5

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Definitions:

Substantial Harm

Significant or considerable damage, injury, or adverse impact.

Unfair Acts

Actions or practices by individuals or companies that are unjust, misleading, or fraudulent and harm consumers or competition.

Consent Order

A consent order is a legal document, approved by a judge, that formalizes an agreement between parties in a dispute without admitting guilt or liability.

Cease-and-Desist Order

A legal order issued by a court or government agency requiring a person or entity to stop a specified activity immediately.