Which of the Following Pricing Practices Is Illegal

question 4

Multiple Choice

Which of the following pricing practices is illegal?

• A) Penetration pricing.
• B) Price skimming.
• C) Predatory pricing.
• D) Cost-based pricing.
• E) Market-share pricing.

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Definitions:

Utility

The satisfaction you derive from a good or service that you purchase. How much utility you derive is measured by how much you would be willing to pay.

Demand Schedule

A table or graph showing the quantity of a good or service that consumers are willing and able to purchase at various prices over a given period.

Marginal Utility

The extra pleasure a customer receives from using an additional unit of a product or service.

Consumer Surplus

The discrepancy between the amount consumers are prepared to pay for a product or service and the actual price they pay.