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:

Pure Competition

A market structure characterized by a large number of small firms, identical products, and free entry and exit from the market.

Long-run Adjustments

Changes a firm or industry makes over a long period to adapt to changes in demand, technology, or other economic factors.

Allocative Efficiency

Occurs when resources are distributed in a way that maximizes the net benefit to society, with goods and services produced at the level where the last unit provides a benefit equal to its cost of production.

Purely Competitive Industry

An industry characterized by many sellers offering identical products where each seller is a price taker due to market forces.