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:

Bases

Substances that can accept protons or donate a pair of valence electrons to form a bond and are characterized by a high pH, often above 7 when dissolved in water.

Transition Metals

Elements found in the central block of the periodic table (groups 3-12), characterized by their ability to form positive ions with incomplete d-shells.

Alkali Metals

A group of chemical elements in the periodic table with similar properties: shiny, soft, highly reactive at standard temperature and pressure.

NaOH

Sodium hydroxide, a highly caustic metallic base and alkali that is available in pellets, flakes, and dissolved solutions, used in the manufacturing of many products, including soap and paper.