Fidelity Corp

question 176

Multiple Choice

Fidelity Corp. earned a 6 percent return on investment last year and wants to increase it to 10 percent this year. Which of the following pricing objectives is Fidelity seeking?

• A) Target return
• B) Growth in sales
• C) Growth in market share
• D) Maximize profits
• E) Nonprice competition

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Definitions:

Collusively

Collusively involves cooperating in a secretive or illegal manner, often used to describe businesses that agree to fix prices or divide markets amongst themselves.

Degrees of Competition

The spectrum of market structures that varies from one extreme of perfect competition to the other of monopoly, including monopolistic competition and oligopoly in between.

Oligopoly

A market structure dominated by a small number of large companies, leading to limited competition.

Monopolistic Competition

A market structure featuring many firms selling products that are similar but not identical, allowing for competition despite product differentiation.