A Price-Cost Squeeze Is a Tactic Used

question 65

Multiple Choice

A price-cost squeeze is a tactic used:

• A) to prevent potential competitors from entering a market.
• B) by a vertically integrated firm to squeeze the margins of its competitors.
• C) by a vertically integrated firm to charge downstream rivals a prohibitive price for an essential input, forcing rivals to use more costly substitutes or exit the industry.
• D) to gain a critical mass of consumers by charging an initial low price.

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Definitions:

Environmental Contingences

This term refers to the idea that the environment can shape behavior by presenting or withholding reinforcements or punishments.

Me Self

A concept in psychology referring to the objective aspect of oneself that is observed and known by others, forming part of an individual's self-concept.

Epistemological Self

Knowledge of one’s own personality traits, experiences, and other attributes; also called the me, as opposed to the I or ontological self.

Task Force

A temporary group of individuals formed to accomplish a specific objective, and then dissolved after the completion of the task.