The Practice of Setting Prices Deliberately Below Average Variable Costs

question 90

Multiple Choice

The practice of setting prices deliberately below average variable costs in order to put a rival out of business is known as ________ pricing.

• A) average variable
• B) collusion
• C) inversion
• D) predatory
• E) competitive

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Definitions:

Inconsistency

The state of being inconsistent or not remaining the same throughout, often leading to confusion or unpredictability.

Discomfort

Discomfort is a feeling of unease or pain, either physical or psychological, often caused by an unfavorable situation or environment.

Counterproductive Work Behaviors

Actions by employees that are harmful to the well-being of the organization or its members.

Harassing Coworkers

Engaging in unwelcome behavior towards colleagues that can be psychological, physical, or sexual in nature.