The Use of Price as a Competitive Weapon to Drive

question 104

Multiple Choice

The use of price as a competitive weapon to drive weaker competitors out of a national market is called:

• A)multipoint pricing.
• B)predatory pricing.
• C)forward pricing.
• D)supra-competitive pricing.

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Definitions:

Variable Cost

A cost that depends on the level of production chosen.

Marginal Revenue

The incremental gain in revenue achieved by a company for selling an additional unit of product or service.

Marginal Cost

The additional cost incurred by producing one more unit of a good or service, a critical concept for economic analysis and decision-making.

Total Revenue

The total amount of money received by a company from the sale of its goods or services before any expenses are subtracted.