There Are Some Instances Where the Supplier Will Employ Short-Term

question 15

Multiple Choice

There are some instances where the supplier will employ short-term strategic pricing in order to _______________.

• A) gain a competitive advantage
• B) increase market share or increase sales
• C) gain a competitive advantage or close out obsolete items
• D) close out discontinued items
• E) gain market share or dump unwanted items

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Definitions:

Marginal Utility

The additional satisfaction or utility that a consumer receives from consuming an additional unit of a good or service.

Pareto Optimal

A state of allocation of resources in which it is impossible to make any individual better off without making at least one individual worse off.

Reallocation

The process of distributing or reallocating resources, tasks, or investments in a different manner with the aim to improve efficiency, returns, or outcomes.

Utility Increase

A rise in the level of satisfaction or benefit that a consumer derives from the consumption of goods or services.